M*Modal out of Chapter 11
M*Modal, which develops voice recognition and clinical documentation technology, has completed its financial restructuring and has emerged from Chapter 11 bankruptcy.
[See also: M*Modal files for bankruptcy protection]
After reducing its debt by 55 percent, the company has "renewed financial strength" said Duncan James, M*Modal’s chief executive officer, in a press 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."
M*Modal offers clinical documentation tools to more than 3,800 hospitals and physician practices. Earlier this year, struggling under $750 million in debt, the firm filed for Chapter 11 bankruptcy protection. This was less than two years after being acquired by J.P. Morgan's One Equity Partners in a $1.1 billion deal back in July 2012.
[See also: M*Modal to go private in $1.1B deal]
"When M*Modal was taken private in 2012, the acquisition was financed with a capital structure aligned with a specific set of assumptions that are no longer relevant," said James in a March 2014 statement. "We intend to use the court process to significantly strengthen M*Modal’s balance sheet and improve the company’s financial flexibility by reducing our debt burden and establishing a capital structure that supports our investment in the future."
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 on July 21, 2014.
On Aug. 6, M*Modal announced that one of its first post-bankruptcy moves would be to partner with EHR vendor athenahealth, offering its M*Modal Fluency Direct and M*Modal Fluency Flex speech recognition and medical dictation apps via athenahealth's "More Disruption Please" Marketplace.
"M*Modal's partnership with athenahealth brings tremendous value to healthcare providers looking to elevate the quality of clinical documentation and increase physician productivity," said Matt Jenkins, M*Modal's senior vice president, marketing and corporate development, in a press statement. "Our solutions make capturing high-quality patient narratives and managing workflows simple and effective, giving physicians more time and better clinical data for delivering improved care."