Hospital for Special Surgery, LLC (dba OneCore Health) emerged from chapter 11 on May 30, 2025, when its standalone plan became effective less than eight months after the Oklahoma City orthopedic specialty hospital filed for relief, and the case closed by final decree on September 29, 2025.
The debtor, an eight-bed Medicare-certified surgical hospital specializing in knee replacement, spinal fusion, and other orthopedic procedures, traced its distress to two distinct shocks. Beginning in June 2022, a botched billing-system implementation disrupted revenue cycle for nearly two years, leaving patient accounts uncollectible and causing several million dollars of lost revenue even as the hospital reached break-even operations in early 2024. The immediate filing trigger was a roughly $15 million medical malpractice judgment entered in September 2024 in the Base Claim litigation, a sum that exceeded management's estimate of the hospital's enterprise value and, together with three additional pending personal injury suits, pushed the debtor into court on October 7, 2024 Voluntary PetitionDkt. 1. Chief restructuring officer Carrie McEntire laid out the operational history and judgment exposure in her first-day declaration, framing the case as a going-concern preservation effort intended to protect roughly 100 jobs and enterprise value pending a possible section 363 sale Declaration of Carrie McEntireDkt. 15.
In practice the case pivoted from a sale track to a consensual standalone plan. Early liquidity came from BOKF, N.A. cash collateral, secured by roughly $765,000 of prepetition debt carrying a first-priority lien on all personal property, and supported by interim and final cash-collateral orders entered in late 2024. As the case matured, the debtor secured a $2.0 million senior secured superpriority DIP revolving facility from Solara Surgical Partners, LLC, approved by a February 2025 final order that also authorized continued cash-collateral use and priming liens. Solara's backing became the foundation for the plan: it served as DIP lender, supplied the new-value contribution, and took ownership of the reorganized business.
The debtor filed its plan and solicitation disclosure statement on April 16, 2025, built around a $2.8 million New Value Contribution ($2.5 million in cash plus a $300,000 general-unsecured-claim waiver by Solara) and a global settlement with Emma Base, the holder of the malpractice judgment Chapter 11 PlanDkt. 254. The plan divided claims and interests into five classes. The Emma Base claim (Class 4) received $4 million in cash plus a 100% interest in a Litigation Trust funded with roughly $551,700 from Allied World Insurance and vested with causes of action against prior counsel Hoisington & Lindsey PLLC. General unsecured creditors (Class 3) recovered 26.2% in cash, critical-trade vendors recovered 65% on non-503(b)(9) prepetition invoices, and the prepetition secured claim was paid in full. Existing equity was cancelled unless holders participated in the new-value contribution, in which case they received New OneCore Interests. Vote tabulation showed accepting impaired classes, and the court confirmed the plan on May 13, 2025 Confirmation OrderDkt. 296.
The confirmation order also approved a $5 million delayed-draw exit facility from First United Bank & Trust Co. to provide post-emergence liquidity, and the DIP obligations were paid in full on the effective date. With confirmation, effectiveness, and final decree all complete, the case stands as a fully consummated standalone restructuring in which a distressed but viable specialty hospital resolved an outsized tort judgment through new-value equity, a structured cash-and-trust settlement with its principal creditor, and exit financing, preserving the Oklahoma City operation as a going concern.
