Case Study

Providing expert testifying support on financing plans

  • Area of Expertise
    Business Litigation & Corporate Investigations
  • Services
    Litigation & Dispute
  • Company
    Regional Health System
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A regional health system’s board recognized that changing competitive and socio-economic conditions in its market necessitated that for sustainable financial success the health system would need to expand service capability at one of its ambulatory care sites that had favorable market characteristics such as population growth, an attractive payor mix, and limited competitor penetration. In recent years the health system had been experiencing increasing financial distress, resulting in rating agency downgrades that punctuated a recognition by both the board and management that successful and timely execution of this expansion was critical to the health system’s sustained financial viability. The board tasked health system management, which was provided pursuant to a management services agreement, to create and execute financing and development plans in support of the campus expansion.

Health system management developed a financing plan, but following a three-year period of execution was unable to secure the financing to support the campus expansion. A competitor successfully completed a service expansion in the more attractive market.

The health system’s legal counsel sought a testifying expert who would opine as to whether the plan of finance developed by the health system’s management company was suitable for, and responsive to, the health system’s current financial circumstances and non-profit healthcare financing practices.


Developed for legal counsel an overview of the health provider sector financing environment, including financing options for non-profit health systems.

Provided legal counsel with an opinion on the financing options available for the health system given its financial performance and market position.

Provided legal counsel with an opinion on whether the outsourced management’s efforts to secure financing were reasonable and prudent and performed in a timely manner based on the facts and the health system’s situational circumstances.

A dispute between the health system’s board and management company was settled prior to the matter going to trial, with the health system’s board satisfied with the resolution.

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