Situation: Financially unstable hospital needed to finance acquisition of new diagnostic equipment
- Limited ability to raise capital through usual means (e.g. bonds)
- Received multiple New York City Council capital allocations, which remained unfunded
Legal issues:
- Inefficient City processes delayed urgently-needed capital funding for years
- Regulators required client to own and possess equipment prior to drawing funding
- Interim unsecured equipment financing required
- Acquisition and equipment maintenance agreements required
Legal solution/strategy:
- Anticipate City needs and rigidly organize all submissions to proactively address NYC concerns
- Negotiate equipment acquisition, financing and support agreements with vendor
- Ensure that vendor needs were met by initially securing the loans and client needs met by an early release of lien in order to satisfy City
Outcomes:
- Client deployed sophisticated medical equipment to help its inner-city patients
Posted in Contracts, Corporate Counsel, Healthcare, Not-For-Profit, Operations
