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Video Library

We invite you to browse our video library to learn more about Value Healthcare Services and our unique approach to bankruptcy receivables.

Select from:

Welcome — An Overview of Value Healthcare Services

Meet our Team – Over 25 Years Experience in Bankruptcy Receivables

A Case Study – Identifying the Need & the Solution

Integration – See the 9 Steps & How Easy They are to Implement

Where the Money Is – Chapters 7, 11 & 13.  Learn the Differences & Which are the Most Valuable for Healthcare Facilities

Video Library



Creating something from nothing!  For many healthcare facilities nationwide, bankruptcies are written off as an asset not worth the effort.  After meeting with over 100 hospitals there was one consensus, bankruptcies aren’t worth much, maybe a few percent.  We know that’s not true and in fact recoveries can be as high as 25%.

A proactive bankruptcy strategy is a key to the financial health of every hospital and healthcare facility.  Our mission is to help our facilities create efficiencies in the collection of bankruptcy dollars.  That involves a three step process: Integration, monitoring  and recovery.  Limited resources are required on the part of our facilities as the system is fully automated and secure.  Once fully integrated, all data is easily accessible and the process is monitored by VHS to insure all bankruptcies are properly tracked.

Meet Aaron Johnson

As the head of the Integration Team at Value Healthcare Services, Aaron Johnson has developed a 9 step process that is simple and seamless.  Our goals are the following:

A.      Create a long term relationship and viable solution that will provide sustainable recoveries.

B.      Limit the IT resources as part of the initial implementation phase.

C.      Utilize the US Federal Bankruptcy System to realize recoveries, requiring no recovery efforts.

Let’s run through the 9 Steps as presented by Aaron:

1.       Capturing All Bankruptcy Case Notices

a.      This is an important first step, to know when a patient has declared bankruptcy.
b.      Our automated system will immediately identify when bankruptcies occur.
c.      VHS can receive court notices on behalf of your facility.
d.      VHS can also scan your eligible account inventory on a daily basis.

2.       Consolidation of all Notices/Transmission of Information to Healthcare Facility

a.       Regardless of methodology, consolidation is done into one consumable data file that can be returned to your organization daily.
b.       VHS can return the data in any format (e.g. XML, CSV, etc).
c.       Transmission is done is a safe & secure manner.

3.       Accounts Statused for Bankruptcy

a.       Once the data is ingested, a number of events will likely trigger:
b.       Account status will be changed to bankruptcy.
c.       If the account is out for 3rd party collections, a recall notice will need to be issued.
d.       A placement file is prepared (again, whatever file format works best for your IT team).

4.       Validation of Bankruptcy Data

a.      Once the placement file has been generated, you can place the data on VHS’s secure FTP site.
b.      VHS will pick up the file and ingest it immediately.

5.       Filing Proof of Claim (POC)

a.       After VHS properly validates the required data, we prepare, produce and deliver the required legal form for the  appropriate US Federal District Court site.
b.       This primary document is known as a Proof of Claim or POC.
c.       POC is the creditor’s right to declare to the US Trustee managing the BK case that the debt is still outstanding.
d.       POCs need to be filed within a time period declared by the Trustee, usually 120 days, to claim the debt.

6.       Monitoring for Patient Distributions

a.       Once the proof of claim is filed, VHS waits for distributions made by the Trustee.
b.       There is no patient contact by VHS or the Healthcare Facility.
c.       Patients agree to the pay the Trustee who in turn by law must distribute all funds to creditors.

7.       Setting of Payment Distributions Expectations

a.       In a Chapter 13, the payment plan is monthly and monies can be distributed for up to 5 years.
b.       In a Chapter 7, if there are assets to distribute, it will likely be consolidated into 1 or 2 single distributions, which could payout up to 10 years.

8.       Distribution of Funds by Trustee

a.       Distributions are done in order of creditor priority: secure, priority and unsecured.
b.       Medical debt is unsecured.
c.       Trustees will distribute only those funds which are in trust.
d.       There are no NSFs.

9.       Funds Remitted to the Healthcare Facility

a.       We will verify once distribution funds are received at our secure and efficient payment processing center.
b.       Funds are then remitted to your facility on a daily, weekly or monthly basis.

Easy, Seamless and Fully Automated

As you can see, the process is simple, efficient and overall low risk.  In addition, our clients are able to review their accounts that have been placed via a secured web application called Secured Blossom.

For additional information or questions about our integration process, please contact me for a free consultation.  On behalf of everyone on our team, we look forward to working with you.

Aaron Johnson

Case Study


“Over 80% of all Consumer Bankruptcies filed in the US are a result of Medical Bills.”

For many Healthcare facilities nationwide, patient bankruptcies are overlooked and written off as Bad Debt based on the assumption that they have no value.  The following case study will prove that they are in fact worth quite a lot.

A second crucial finding of this case study deals with the way patient bankruptcies are handled  Both collection agencies and lawyers claim to have the expertise to manage these unique patient accounts.  However, in most cases, collection vendors do not have the necessary procedures in place to capture a vast majority of the revenue.  What’s the solution?  We’ll address that after the results of our study.

First a little background.  In 2012, we travelled to over 100 hospitals and asked a simple question: What are your bankruptcies worth?  Most of the responses were the same, they’re worth very little or even nothin’.  That is contrary to our experience with non-healthcare related bankruptcy receivables.  For 25 years, working with top Fortune 500 companies, we historically have seen recovery rates as high as 25%.  So we initially set out to conduct a case study to see the real numbers and determine how much hospital revenue was being missed, the lost opportunity of Bankruptcy Recoveries.  However, we learned something else very valuable from the hospitals we visited, most of them were not familiar with how the recovery process works.  Properly tracking and filing claims in a timely manner is crucial.  The case study clearly shows the need for a proactive strategy.  That’s where Value Healthcare Services was born.

The Case Study

Here are the parameters of our hospital bankruptcy case study.

Target Location:  One of the Largest Healthcare facilities located in the 3rd Federal District North Eastern region, with annual revenues greater than $8 Billion Dollars.

Cases Searched: We Randomly pulled 500 Chapter 13 Filings out of ~ 18,000 that occurred in the 3rd Federal District in 2012 or approximately 2.5%, in order to extrapolate the full picture.

The Simple Goal: To first determine how many bankruptcy petitions referenced the facility or had any Healthcare Debts stated on the Bankruptcy Filing.  We then wanted to see how many Proof of Claims were filed on behalf of the Hospital.

The Results

Out of 500 random cases, 423 had no outstanding debts referencing the facility.  77 of the chapter 13 bankruptcy cases, with a total of $152,282 of Outstanding Debt, were directly related to the Hospital.  All of this information was found using public files and without accessing any hospital records.  Once we determined that there were 77 cases that pertained to the facility, we looked into each of them to see how many proofs of claims were filed on behalf of the hospital.  Out of 77, we were shocked to find out that only 1 Proof of Claim, in the amount of $2,011, was filed on behalf of the Hospital.  Only 1!  This means that there were 76 cases totaling $150,271 where no Claims were filed on behalf of the Hospital.

We then confirmed the payout % (weighted average) declared by the Trustee on Unsecured Debt (Medical Debts are considered Unsecured) which was 8.91%.

Missed Opportunity

Let’s look closely at the numbers and what the “lost” revenue was for the Hospital..  The total amount of debt listed for the 76 cases that the hospital missed, was $150,271.  The payout, determined by trustee, was just under 9%.  So the hospital could have recovered an additional $13,391 versus the $179 which was recovered, if all of the proofs of claims were filed in a timely manner.

This case study was a tiny sample, or 2.5%, of all the Bankruptcies filed in the District.  So if we extrapolate the full amount of lost opportunity for this one facility for all Bankruptcies in the district, the true lost opportunity is over $650,000.  Additionally, the payout would have likely been significantly higher than ~9%.  Let’s explain.  The federally mandated process of bankruptcy involves a Trustee, who oversees the filing of claims by the creditors.  The ~9% payout in our case is assuming that all Creditors file claims.  That rarely happens, in part because creditors must file a claim in a timely manner.  If they miss the window of opportunity they cannot collect any money.  So, once that window expired, the 9% exponentially becomes higher as the pool of money is distributed to a smaller number of creditors.  This is why historically our recoveries can reach as high as 25%.  The case study clearly shows that Proofs of Claims were not being filed by the hospital. There are not second chances when it comes to bankruptcy filings.

Also, keep in mind that this case study only includes Chapter 13 filings and not Chapter 7 which account for ~ 70% of all Bankruptcies.  Although Chapter 7 filings don’t produce the 20+% recoveries, they can be substantial due to the percentage of overall bankruptcies.  Historically, Chapter 7 filings will recover 1/2% over time.

Lastly, This case study is only a sampling of the total population of bankruptcies in this federal district.  Patients from surrounding Federal Districts likely have this facility’s debt listed in their petitions.


This random case study clearly proves two important points.  First, that bankruptcies are worth a substantial amount of money if properly filed.  Second, that facilities must implement a proactive strategy that is fully automated and able to catch bankruptcies before the window for filing closes forever.

Value Healthcare Services is designed to help hospitals create efficiencies in the collection of bankruptcy receivables.  We guide our facilities through the entire process, from integration and monitoring to filing and recovery, with little internal resources needed from our clients.

How much are your bankruptcies worth?  For a free evaluation and to request a similar case study in your hospital district, be in touch with our headquarters or email info@valuehealthcareservices.com.


Video Library

We invite you to browse our video library to learn more about Value Healthcare Services and our unique approach to bankruptcy receivables.

Select from:

Welcome — An Overview of Value Healthcare Services

Meet our Team – Over 25 Years Experience in Bankruptcy Receivables

A Case Study – Identifying the Need & the Solution

Integration – See the 9 Steps & How Easy They are to Implement

Where the Money Is – Chapters 7, 11 & 13.  Learn the Differences & Which are the Most Valuable for Healthcare Facilities

Meet Our Team

Meet Our Team

For 25 years we have been working with top Fortune 500 companies, filing millions of bankruptcy claims in the financial, commercial and retail sectors.  Using a fully automated and secure system, we have collected hundreds of millions of dollars for our clients.  Now, we are bringing that experience and proven success to the healthcare industry.

Value Healthcare Services is the first company of its kind, dedicated exclusively to one aspect of the revenue cycle, bankruptcy receivables.  Our team helps deploy a proactive strategy for a wide range of healthcare facilities across the country.  Following the integration process, which requires little resources from our facilities, we help monitor when bankruptcies occur and then file proofs of claims on behalf of our clients.  It’s a seamless process that is highly effective.  Once fully integrated, we guarantee to take the necessary steps to maximize recoveries on every patient account that files for bankruptcy.

Our clients put a great deal of trust in us, particularly when it comes to dealing with sensitive and confidential information, and we take that responsibility very seriously.  Our team is dedicated to working in a professional manner to set up systems that protect patient privacy first and foremost while at the same time adding revenue to the bottom line.

Our Partners

Value Healthcare Services is proud to be the first company dedicated exclusively to healthcare bankruptcy receivables.  Our partners are the leaders in their respective fields.

Bitach Capital Management

HQ: Lawrenceville, GA

Bitach specializes in  purchasing distressed receivables, and  managing the recovery process through traditional and alternative strategies.  The company has created a unique approach to recovery which has made it a leader in the industry.  Currently, Bitach manages over $6 Billion in healthcare receivables.


HQ: Seattle, WA

Ophrys is a single strategy firm focused on Bankruptcy Receivables.  As the largest purchaser of bankruptcy accounts in the financial, retail and commercial sectors, Ophrys fully understand the intricacies of bankruptcy.

Weinstein & Riley, P.S.

Practices in all 50 States

Weinstein & Riley has filed millions of bankruptcy claims on behalf of the nation’s largest companies, collecting hundreds of millions of dollars. As a full service Law firm,  W&R has extensive knowledge of bankruptcy law and practices in every state.


Our Team

Ezra Zucker, Chief Exectuive Officer


Our Privacy Policy


Bankruptcy is a federally regulated process and we adhere strictly to the mandated guidelines.  That includes the Health Insurance Portability and Accountability Act of 1996 (HIPAA), Disclosure of Protected Health Information (PHI) and the American Reinvestment and Recovery Act of 2009 (ARRA).  We handle each account on behalf of our clients with complete privacy.  Unlike debt collection, with bankruptcies there is zero patient contact.  During the integration process we insure that all patient information is transferred securely and only used for the purpose of bankruptcy monitoring and recovery.  We have created privacy protocols that restricts access of patient information to only the smallest number of our employees, in full compliance with HIPAA and PHI regulations.  In addition, we have strict company policies that patient information is never to be printed or removed in any way from the office environment.