VMG Health Delivers 10,000-Asset Valuation in 5 Days for Distressed Hospital Opportunity

A management consultant group and hospital roll-up entity identified a turnaround and growth opportunity with a financially distressed community hospital that filed for Chapter 11 bankruptcy earlier in the year. On an aggressive timeline, the group partnered with VMG Health to complete a quick but comprehensive valuation and secure needed funding. 

Situation

Hospital closures for 2025 appear to have accelerated compared to 2024. Through August 2025, Becker’s Hospital Review has reported 19 hospital closures, which is on pace to eclipse the 25 closures reported for 2024. Hospital bankruptcies are also on the rise, as we have observed approximately 20 hospitals subject to Chapter 11. Corresponding to the trends above, the number of hospital M&A transactions involving a financially distressed party achieved a record high in 2024, increasing over 10% compared to 2023.  

VMG Health’s client sought to pursue an acquisition of a financially distressed hospital with the goal of turning around hospital operations and capturing profitability. In support of the acquisition, the client sought financing through an asset-based loan with specific lending criteria pertaining to the value of certain hospital collateral. One of the components of the loan required an appraisal of the hospital’s equipment, other tangible personal property, and inventory. 

Solution

The client engaged VMG Health to perform a comprehensive appraisal of the hospital equipment and other personal property on a time-sensitive basis. The appraisal of the subject assets associated with the 278-bed, acute care facility demanded expertise in the liquidation value of over 10,000 items of medical equipment, vehicles, computer equipment, communications equipment, and office furniture and equipment. To help the client secure the loan and advance its hospital bid, VMG Health expedited a complete appraisal draft within five business days. 

Success

In just five business days, VMG Health completed a full valuation of more than 10,000 assets. The appraisal will be instrumental in supporting up to $50M in secured credit through an asset-based loan and will provide both the lender and the client with the confidence they need to move forward. VMG Health’s rapid, data-driven approach strengthened the client’s acquisition process and positioned them to pursue a successful turnaround strategy for the hospital.