April 20, 2024

Seymour Well being, which has 70,000 to 100,000 sufferers, after receiving $6.8 million in bailout cash from VCH, remains to be in monetary bother

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One of many two Vancouver clinics that Seymour Well being operates was inside days of being evicted in June for nonpayment of lease, which might have left hundreds of sufferers with no physician, in response to a judgment on a Vancouver Coastal Well being petition to place the clinic firm into receivership.

Seymour Well being, which has 70,000 to 100,000 sufferers, remains to be in monetary bother after receiving $6.8 million in bailout from VCH, B.C. Supreme Courtroom Justice Shelley C. Fitzpatrick wrote within the judgment by which she granted the appointment of a receiver of the clinics.

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The $6.8 million hasn’t been repaid and the clinics’ monetary disaster from mid-2022 has continued.

“I conclude that the one cause why that disaster has not totally materialized into monetary collapse since then is the funding that VCH supplied, which has now decidedly come to an finish and solely not too long ago, in April 2023,” she wrote.

“In different phrases, I conclude that Seymour Well being is again to being not simply on the sting of solvency however within the thick of insolvency.”

She famous within the judgment that Seymour Well being was “adamantly opposed” to a receivership and mentioned it has filed a lawsuit in search of thousands and thousands of {dollars} in damages from VCH from its earlier dealings with its operations.

Seymour Well being had utilized to the courtroom to transform VCH’s petition to an motion that could possibly be heard in due time within the courts. Fitzpatrick dismissed that motion.

She mentioned the appointment of a receiver avoids the potential dangers that will end in “severe repercussions to VCH and in addition to the sufferers.”

“The first objective of any receivership is to stabilize the state of affairs for the good thing about all stakeholders,”  together with physicians and different employees, she mentioned. “A keep of continuing avoids collectors taking unilateral motion in opposition to the debtor and its property to the detriment of the general property.”

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In June 2022, Seymour Well being owed again lease on the seventh Avenue clinic of $305,000, and by June of this 12 months, that had doubled to $609,000. The owner on June 15 served a requirement for fee, which wasn’t paid, and on June 19 suggested VCH if lease wasn’t paid, the clinic can be evicted on June 21.

The decide wrote that “some very late within the day negotiations with the owner have staved off any motion,” however “any actions by collectors in opposition to Seymour Well being will have an effect on its means to proceed to function.”

Fitzpatrick mentioned that Seymour Well being “needs to be left alone to proceed to function as finest it will probably in the interim, with out repaying any quantities to VCH. … such a place is untenable within the circumstances.”

She famous {that a} advantage of the appointment of a receiver, Ernst & Younger, is will probably be granted powers to borrow as much as $2.5 million extra from VCH to maintain the clinics open.

The house owners of Seymour Well being mentioned its monetary difficulties stem from its operation not receiving the licences and exemptions that will permit it to run lab providers for its personal sufferers and others, which is on the coronary heart of its lawsuit in opposition to VCH and others. That has but to heard in courtroom.

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