Two years after Saint Vincent Catholic Medical Centers (SVCMC) filed for bankruptcy for the second time, on April 14, 2010, the case has amassed nearly $56 million in legal and professional fees. The biggest payments, through the end of February, are to Grant Thornton, whose restructuring consultants raked in $22 million. The SVCMC case has been worth $19 million to law firm Kramer Levin so far.
With many assets already sold, lawyers have turned their attention to mining potential sources of cash. The system issued checks in more than 500 transactions shortly before it filed for bankruptcy. The payments fall within a statutory time frame that allows SVCMC to try to get the money back. The checks are worth $126.4 million, and about $40 million could be recovered, SVCMC’s lawyers estimate. Law firm Togut, Segal & Segal is looking for court approval to pursue that cash for a contingency fee of 22.5% of the money recovered. Some of the claims include payments to medical equipment companies, Consolidated Edison, staffing agencies, doctors and oil delivery firms.