Robert Elkins, M.D., chief executive officer and president of bankrupt post-acute-care giant Integrated Health Services, is leaving the company he helped found, IHS said late last week.
Turnaround consulting firm Alvarez & Marsal has hired Joseph Bondi, previously a senior vice president at Republic Health Corp., to lead the company as chief restructuring officer. He's in line to be named CEO.
IHS sought Chapter 11 protection in February after losing $2.6 billion in 1999. Elkins, 56, has attributed most of the losses to Medicare reimbursement cuts stemming from the Balanced Budget Act of 1997. Analysts say rapid expansion is responsible for at least some of the financial troubles.
IHS owns 366 skilled-nursing facilities and 17 specialty hospitals.
In another bankruptcy matter, U.S. Bankruptcy Court in Wilmington, Del., has granted a fourth extension to Vencor for filing its reorganization plan. The Louisville, Ky.-based long-term-care chain has until Aug. 17 to file a plan.
Vencor and its primary landlord, Ventas, have argued over plan details. Vencor, which sought protection last September, owns 293 nursing homes and 56 long-term-care hospitals.