Bankruptcy Court upholds sale of San Jorge Hospital

Federal Bankruptcy Court Judge Maria de los Angeles Gonzalez ruled that… St. George’s Children’s Hospital It will be put up for sale through an auction process, more than a year after the Santurce-based facility decided to file for bankruptcy due to debts amounting to $50 million.

Under the order issued last Monday, the deadline for submitting bids will be next Monday, December 11, which is also the day the deadline for hospital owners to appoint a “pursuing bidder,” the term by which the bankruptcy process refers to the initial bidding for Selling assets of a bankrupt company.

As of Aug. 7, according to a disclosure statement filed with the court, the hospital was “working with what it considered to be the best offer received to date to sell all or substantially all of the debtor’s assets associated with the transaction.” Hospital, including real estate and personal property.

In fact, Jose Luis Rodriguez, Vice President and CEO of San Jorge Children’s Hospital, previously confirmed to The new day Talks with a group of investors have progressed.

“There are many offers, but there is already an official offer. Someone is walking and the clock is turning back. Let’s start a new phase,” the executive said in an interview with this newspaper on September 1.

By agreeing to sell the hospital at public auction, the judge in charge of the case confirmed that the decision was in line with the interests of the hospital and its creditors.

“The debtor (San Jorge) initiated the Chapter 11 case to facilitate a timely and efficient sale process intended to protect jobs and hospital beds, ensure continuity of essential health care services for affected communities and maximize the value of the debtor’s assets for the benefit of all parties involved,” the filing said. Gonzalez ordered.

“The tender procedures are fair, reasonable and appropriate in the circumstances, and reasonably designed to maximize the value to be achieved for the assets.”he added.

The order states that the hospital seeks to sell all its assets, without any liens, including any kind of intellectual property, current rents, contractual rights, among others.

Last year, the media reported that the list of creditors of the San Jorge Children’s Hospital includes East BankWho owes him $42 million Electric Power Authority ($3 million) and Water and Sanitation Authority ($424,682).

By approving the sale of this hospital, there are five hospital facilities that will change owners in less than a year, as the Federal Bankruptcy Court also upheld the sale of the four hospitals belonging to the HIMA San Pablo Group, which were accepted for sale and the company declared bankruptcy last August, after accumulating debts exceeding $472 million.

Two of the group’s hospitals, Fajardo and Humacao, have been transferred to their new owners, but the closing of transactions for the facilities in Caguas and Bayamon remains pending.

According to several experts consulted by this medium, the financial situation of the country’s hospitals is critical, which will require that at least 30 of Puerto Rico’s 69 hospitals will have to transform their operations in the coming years, while another 15 will have to do so. To reduce them, a scenario that may lead to the closure or legalization of services.

This newspaper revealed last September that the debts of hospitals and other health entities to the government alone exceed $200 million.