Pipeline Health emerges from bankruptcy under new management

The U.S. Bankruptcy Court for the Southern District of Texas has approved a Chapter 11 plan for El Segundo, California-based Pipeline Health System that, according to law360.com, will reduce debt by $330 million.

Pipeline filed for Chapter 11 on October 2 but plans to emerge from bankruptcy in the coming weeks, the system said in a January 13 announcement. Chapter 11 approval is a significant step forward for Pipeline, which operates hospitals in Texas, California and Illinois, as it strives to become a stronger and more resilient system.

In recent months, system executives and hospital leaders have been working on a restructuring process that included the sale of two hospitals in Chicago, evaluating supplier contracts for affordability, creating a business plan with realistic financial targets to balance the budget, and securing financial agreements with key stakeholders. support his future.

Pipeline currently operates one hospital in Dallas and four in the Los Angeles area.

There will be key leadership changes in the coming weeks. CFO Bob Allen will take over as CEO, replacing Andrey Soran. Joe Badalian, COO; Tracey Bowen, Human Resources Director; and Bob Frank, MD, Chief Medical Officer, will also step down to pursue other opportunities.

“We are indebted to our Pipeline corporate leaders, physicians, CEOs and management teams of our hospitals, and others who have collaborated in this complex restructuring process,” Mr. Soran said in a press release. “I’m proud of the work we’ve done together.”

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