Lessons from the Allegheny bankruptcy.

The fall of the house of AHERF: the Allegheny bankruptcy.

The $1.3 billion bankruptcy of the Allegheny Health, Education, and Research Foundation (AHERF) in July 1998 was the nation's largest nonprofit health care failure. Many actors and factors were responsible for AHERF's demise. The system embarked on an ambitious strategy of horizontal and vertical integration just as reimbursement from major payers dramatically contracted, leaving AHERF overly e...

Ten Years of the Brazilian Bankruptcy Law: Some Lessons Learned and Some Wishes for Improvement

The Brazilian Bankruptcy Law—Law No. 11,101 of 2005 (“BBL”)—has just celebrated its 10th anniversary.2 It replaced the outdated bankruptcy law that had been in force since 1945. The BBL promoted a major overhaul of the Brazilian corporate insolvency system. It ultimately shifted from a liquidation-oriented and outdated legislation to embrace modern principles of corporate restructuring designed...

Federated's Acquisition and Bankruptcy: Lessons and Implications

Bankruptcy Prediction: Dynamic Geometric Genetic Programming (DGGP) Approach

 In this paper, a new Dynamic Geometric Genetic Programming (DGGP) technique is applied to empirical analysis of financial ratios and bankruptcy prediction. Financial ratios are indeed desirable for prediction of corporate bankruptcy and identification of firms’ impending failure for investors, creditors, borrowing firms, and governments. By the time, several methods have been attempted in...

Integration reconsidered: five strategies for improved performance.

The year 1998 has been a terrible one for large complex health enterprises. The year brought well-publicized crashes of former darlings of Wall Street-Columbia/HCA, MedPartners, PhyCor, and Oxford Health Plans. There were also less well publicized financial crises in the nonprofit world -Chapter 11 bankruptcy for the East Coast's most aggressive “system," Allegheny Health, Education and Researc...