Four details:
1. UPG filed for Chapter 11 bankruptcy protection in November 2018 after discovering that its financial losses were well beyond the projected $5.5 million. UPG’s physician numbers dropped by 50 percent in the past decade, hurting revenue and the viability of leased office space.
2. UPG’s reorganization and bankruptcy exit plan entails receiving financial assistance from Wayne State. It also involves shutting down a Troy, Mich.-based surgery center, closing clinical practices and downsizing several other sites.
3. Wayne State could end up paying over $16 million to help lift UPG out of bankruptcy. The plan is expected to help UPG earn $3 million in profit by 2022, a drastic turnaround from its 2018 loss of $8.1 million.
4. By the end of the year, UPG intends to shrink its clinical space from 260,000 square feet to 115,000 square feet across seven sites.
More articles on turnarounds:
Trump administration targets consolidation, cost disparity across sites — 5 takeaways
Bill to repeal physician-owned hospital ban introduced in U.S. House
Power outage strikes New York ASC
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.