Houston co. acquires 6 Neighbors Emergency Centers out of bankruptcy courtNovember 09, 2018
Houston-based ZT Corporate and its Altus Healthcare System affiliate have finalized the acquisition of six freestanding emergency centers.
The centers used to be owned by Houston-based Neighbors Health, which filed for Chapter 11 bankruptcy protection in July. The purchase price was not immediately available.
Services and jobs will not be affected during the transition, ZT Corporate said in its Nov. 8 press release. The acquired locations are at:
- Baytown: 6051 Garth Road
- Pasadena: 7215 Fairmont Parkway
- Crosby: 14120 FM 2100
- Porter: 22678 Highway 59
- Pearland: 11130 W. Broadway St.
- Kingwood: 1120 Kingwood Drive
ZT Corporate’s health care portfolio already includes five freestanding Altus Health emergency centers in Texas, among other facilities.
“This acquisition allows our community to continue to access exemplary medical care through Neighbors Emergency Centers,” Taseer Badar, chairman and CEO of ZT Corporate and Altus Healthcare System, said in the Nov. 8 release. “We, along with Altus Healthcare System, are excited to strengthen our health care footprint in the fourth largest city in the U.S. through Neighbors Emergency Centers, who share our dedication to patients, culture and community.”
Neighbors Legacy Holdings Inc. and 48 other related entities filed for Chapter 11 bankruptcy protection in July and lined up stalking horse bidders for its Houston and non-Houston locations. Altus Health Systems OPCO LLC and Altus Health System Realty LLC were the stalking horse bidder for the Houston-area locations. However, agreements were subject to higher and better bids at auction, which was held a couple months ago.
According to court filings, Neighbors is now selling its assets in five separate asset packages to five separate buyers. Some other parties, including physicians who work at the emergency centers, petitioned the court to consider the highest single bid that keeps the company intact instead, per court filings.
On Oct. 31, Neighbors closed two of its asset sales to Tenet Business Services Corp. and AEC ER 4 LLC. As of Nov. 1, Neighbors was “well on the way to closing two others,” according to a court filing. However, it was still working through terms with the fifth buyer, per the filing.
Also in October, Neighbors informed the Texas Workforce Commission that it would close its corporate headquarters and billing office, cutting 56 jobs. The office at 10800 Richmond Ave. will close Dec. 31.
The first Neighbors Emergency Center opened in 2009, and the company operated 33 locations across three states at its peak. As of July, Neighbors operated 22 freestanding emergency centers throughout Texas.
“In recent years, the Debtors have experienced financial difficulties caused in large part by increased competition, less favorable insurance payor conditions, declining revenues, and disproportionate overhead costs as compared to their operational income,” a July court filing stated. “These challenges have caused significant strain on the Debtors’ liquidity and threatened their ability to continue operating as a going concern.”
The company previously made the Houston Business Journal’s Fast 100 List of the fastest-growing private companies locally. It ranked No. 19 in 2016, the same year it relocated its corporate headquarters and consolidated its other offices to 10800 Richmond.