M*Modal Emerges from Chapter 11
M*Modal has completed its financial restructuring, reducing its debt by 55 percent, and has emerged from Chapter 11 bankruptcy. In March, the number two clinical documentation and speech solutions provider in the worl, filed for Chapter 11 bankruptcy protection, citing a decline in sales and mounting debt.
At the time, the Franklin, Tenn.–based company collectively listed liabilities of $852 million and assets of about $626 million, according to court papers. The company had roughly 9,900 employees in six countries, and its healthcare clients included approximately 3,800 hospitals, clinics, and medical practices.
"With renewed financial strength, M*Modal is firmly positioned to deliver the highest quality and most advanced clinical documentation to hospitals and physician practices," said Duncan James, M*Modal’s CEO, in a statement. "Our new capital structure will better support M*Modal's continued investment in delivering innovative transcription, coding, and speech technology solutions and will provide a stronger foundation to execute on our strategic plans.
"Specifically, M*Modal is uniquely capable of delivering integrated clinical documentation solutions that accurately and efficiently document speech narratives of complex patient and physician interaction into electronic health records," James said. "Our solutions support the capture and care collaboration of over 60 million medical visits each year, enabling physicians to save time, hospitals to receive appropriate reimbursement, and patients to receive better care."
M*Modal’s Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of New York by an order entered July 21.