By Jane Brust
Pipeline Health System, LLC, announced today that its Chapter 11 Plan was confirmed by the United States Bankruptcy Court for the Southern District of Texas. The health system filed for Chapter 11 Oct. 2. Pipeline expects to emerge from Chapter 11 in the coming weeks.
Pipeline’s executive leadership team and hospital CEOs worked through a strategic restructuring process relatively quickly. In that process, and with the guidance of legal experts and business consultants, Pipeline has:
• Successfully completed the sale of the two Chicago hospitals with public and legislative support.
• Evaluated all vendor contracts to ensure affordability and service excellence to meet the company’s needs.
• Developed a high-level strategic business plan that sets realistic financial goals to balance the budget and ensure the company’s future success.
• Secured financial agreements with key stakeholders who want to support Pipeline Health going forward.
In a memo to employees and physicians, Pipeline Chief Executive Officer Andrei Soran characterized the announcement as “excellent news for our employees, physicians and the patients we serve,” as the company prepares to “embark on a new path forward.”
In announcing the filing, Pipeline leadership stated that the company’s goal was to work through some difficult industry-wide financial challenges — exacerbated by the COVID-19 pandemic — and emerge as a stronger organization early in the new year.
Meanwhile, in the weeks ahead and with an orderly transition, Pipeline Health will have a new chief executive officer at the helm as current Chief Financial Officer Bob Allen, an experienced healthcare executive, becomes CEO.
Four executive leaders will be stepping away from their duties to pursue other healthcare opportunities as their commitment to a successful restructuring has been fulfilled. Those individuals include: CEO Soran; Joe Badalian, chief operating officer; Traci Bowen, chief human resources officer; and Dr. Bob Frank, chief medical officer.
Soran noted: “We owe a debt of gratitude to our Pipeline corporate leaders, physicians, our hospital CEOs and management teams and others who have collaborated in this challenging restructuring process. I am proud of the work we have done together.”