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White-Wilson Medical Center files for Chapter 11 bankruptcy to restructure debt

The multi-specialty physician group announced the voluntary filing Friday while pledging to continue patient care without interruption.

White-Wilson Medical Center filed for Chapter 11 bankruptcy Friday, launching a reorganization process the 79-year-old medical practice says will strengthen its financial foundation while maintaining uninterrupted patient care across Northwest Florida.

  • The multi-specialty physician group filed the voluntary petition in the U.S. Bankruptcy Court for the Northern District of Florida on Oct. 3, according to a press release from the organization. White-Wilson operates offices in Fort Walton Beach, Crestview, DeFuniak Springs, Destin, Niceville and Navarre, employing more than 300 individuals and offering more than 15 medical specialties.

“White-Wilson has been proud to serve this community for nearly eight decades,” Dr. Kenneth Persaud, chief executive officer, said in the release. “We are taking this step to address financial obligations, reduce debt and strengthen our foundation so we can continue providing high-quality care for generations to come.”

The company filed customary motions seeking court authorization to pay wages, honor employee benefits and continue patient care programs as usual. White-Wilson also filed an emergency motion for use of cash collateral to support operations during the restructuring.

Dr. John C. Dali, president of White-Wilson Association, said in the release that the reorganization plan serves the best interests of patients, physicians, other clinicians, employees, partners and community members.

  • “This will ultimately result in a more promising future,” Dali said. “Our primary goal remains to keep our patients healthy and to heal them quickly, as it has always been able to do for the past 79 years.”

The Chapter 11 filing will allow White-Wilson to “restructure its debt obligations, including secured and unsecured claims; maximize the value of the medical practice for the benefit of creditors and stakeholders; preserve jobs and maintain ongoing patient services; and position the organization for long-term success as a trusted health care provider,” according to the press release.

In a letter to patients dated Oct. 3, Persaud reassured patients that the organization is not closing and that they will have continued access to their current providers.

“We are still the same doctors, clinicians and care teams caring for our patients everyday,” Persaud wrote. “We will do everything we can to make this transition as seamless as possible for our patients.”

Persaud wrote that the restructuring applies to a legal process aimed at preserving White-Wilson as an effective regional healthcare system while reorganizing the organization with resources needed to provide financial stability, growth and enhanced patient experiences.

  • White-Wilson intends to propose a Chapter 11 Plan of Reorganization that will provide for distributions to creditors and enable the practice to “emerge from bankruptcy as a stronger organization,” according to the press release.

Johnson Pope Bokor Ruppel & Burns is representing White-Wilson in the Chapter 11 proceedings. Partners Alberto “Al” F. Gomez Jr. and Michael Markham are serving as lead counsel, while partner Michael Magidson will lead the healthcare law representation.

“We understand the term ‘bankruptcy’ can sound concerning; however, we are confident that this reorganization plan is in the best interest of not only our patients and provider staff but for the community we serve, as well,” Persaud wrote.

PROMOTION

3 Responses

  1. I’m not shocked. I’ve been trying for six months to get them to call me back with test results. I have to make an appointment just to get a receptionist to tell me anything. on one occasion, it was that I should’ve been referred for a biopsy two months prior. They are clearly struggling to attract and retain quality care professionals. If they do survive this, they need a complete overhaul

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