USHC’s agent bank to acquire its assets, sell off businesses
USHC’s agent bank to acquire its assets, sell off businesses
By MEREDITH BONNER
HHBR Editor
Citing cash flow problems, U.S. HomeCare (USHC; Hartsdale, NY) said last week it will shut down April 14. The company, which has continuously defaulted on its loans, said its agent bank, Chase Manhattan Bank, will acquire USHC’s assets and sell them off.
Chase Manhattan last week entered into a definitive agreement to sell USHC’s New York assets to Premier Home Health Care and is negotiating other deals to sell the company’s Connecticut and Pennsylvania assets.
The company said the sale of its assets is largely the result of the company’s repayments to the Medicare program, repayments related to liabilities incurred in the early 1990s, the repayment of the 1998, $1.8 million settlement of a probe of Medicaid billing in New York, and recent Y2K problems.
USHC CEO Sophia Bilinsky, along with the company’s board members, will resign as a result of the closing.
Bilinsky told HHBR that the current patients and employees of USHC will be transferred to various agencies that are purchasing assets of USHC.
USHC said it explored many alternatives to its cash flow problems, but in the banks’ judgement, closing was the only alternative, given the depressed nature of the home healthcare industry and the banks’ level of interest in continuing their support of the company’s cash flow shortfalls.
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