The hospital system operates a 241-bed acute care hospital under the name Thomas Memorial Hospital in South Charleston, WV, and a 142-bed acute care hospital under the name Saint Francis Hospital in Charleston, WV
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As financial advisor, Force 10 assisted in negotiating a consensual Plan of Reorganization with municipal bondholders, the PBGC, and unsecured creditors of this hospital system in West Virginia by issuing new tax-exempt debt.
In January 2020, Thomas Health Systems (THS), a nonprofit healthcare system in West Virginia, filed for Chapter 11 bankruptcy to address its deteriorating financial condition. Operating two critical acute care hospitals, St. Francis and Thomas Memorial, and supporting services, THS faced mounting operational losses, a declining patient base, and a crushing $180 million secured debt burden. Force 10 was engaged as the financial advisor to help stabilize the organization and develop a path to financial recovery.
One of the most pressing issues was THS’s $145 million of municipal bond debt. Force 10 worked closely with the bondholders to negotiate a restructuring plan that reduced the bond debt to approximately $60 million via a new issuance.
Force 10 implemented rigorous cash flow management, including a 13-week forecast to prioritize expenditures and ensure compliance with Chapter 11 requirements. These efforts, combined with operational efficiency improvements, positioned THS to maintain uninterrupted healthcare services throughout the bankruptcy process—a critical achievement given the system’s importance to the community. This was accomplished in the face of the COVID-19 pandemic.
Thomas emerged from Chapter 11 in 2021 with a significantly reduced debt load and a reorganized capital structure that ensured long-term sustainability. Ultimately, Thomas’s restructuring led to an affiliation with the West Virginia University (WVU) Health System.
