2024-01-27 09:00:00
Thursday morning, thousands of parents on the West Island of Montreal were startled to learn that their child’s private clinic would close its doors in 48 hours.
We regret to announce that due to circumstances, the Children’s Clinic will be closing its doors. […] on January 26, the parents learned through social networks.
The clinic was struggling financially.
However, this may be the fate that awaits more than 300,000 West Island patients if a private health group, the Brunswick Group, does not manage to restructure its finances within a few months .
In this separate file from the Children’s Clinic, a trustee appointed as part of the Brunswick Group restructuring file seeks to safeguard all activities.
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Up to 170 doctors and 125 employees work in Brunswick Group companies in the west of Montreal.
Photo : Ivanoh Demers
The impact of bankruptcy
Bankruptcy would disrupt medical services [offerts] to a significant portion of the population of the West Island of Montreal (approximately 300,000 patients per year), Ayman Chaaban, of the Raymond Chabot company, recently wrote in order to convince a Superior Court judge to grant him the full powers to restructure the Brunswick Group on behalf of the secured creditors.
In addition to the impact on patients, the latter cited the loss of approximately 125 jobs (not counting doctors) as well as the substantial disruption of medical activities for doctors, who will suddenly be forced to move and relocate their practice to other locations. other clinics.
The group has up to 170 doctors who practice in both the public and private sectors.
A potential buyer
Reached by telephone, controller Ayman Chaaban told us he was sure of finding a buyer for the medical activities by the end of February.
Thursday evening, Mr. Chaaban managed to convince an insurance company at the last minute to extend professional liability coverage for doctors and nurses for a month. Without insurance, the professionals would not have been able to continue their activities.
According to our information, the ELNA Medical Group is in the running to acquire the medical activities of the Brunswick Group. ELNA forms the largest network of medical clinics in Canada, we can read on its website, with 95 clinics and CDL Laboratories.
Founded in 1995, the Brunswick Group is notably composed of the Brunswick Health Group, the Brunswick Medical Center, the Children’s Clinic in Pointe-Claire, SanoMed Solutions, Brunswick Research, the Brunswick Minor Surgery Center and Brunswick Endoscopy.
The Brunswick Group is owned by seven shareholders, including five doctors.
At the CIUSSS de l’Ouest-de-l’Île-de-Montréal, they say they are aware of the financial difficulties encountered by the clinic in question and are in close communication with the Ministry of Health.
With this in mind, we are ready to adopt mitigation measures if necessary, in order to minimize any potential impact on the services offered to the population, says CIUSSS spokesperson Maxime Rolin by email.
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The Brunswick Group brings together 170 doctors in both the public and private sectors.
Photo : Ivanoh Demers
A costly expansion in 2019
As with other companies, COVID-19 and a costly expansion project led the Brunswick Group to have to resort, in July 2023, to the Bankruptcy and Insolvency Act.
In 2019, the decision to add 60,000 square feet to the medical center in Pointe-Claire caused a significant increase in the Brunswick Group’s cost structure, according to public documents.
The pandemic has also resulted in a reduction in the number of hours worked by doctors, and a reduction in the number of visits and the ability of tenants to pay, it is specified.
As a result, the Brunswick Group is insolvent, has an accumulated deficit of $21 million and owes its secured creditors $40 million, plus $20 million to unsecured creditors, including doctors.
For controller Ayman Chaaban, the fate of the real estate complex in Pointe-Claire will be a separate issue. I haven’t decided yet if I’m going to run it for a few months before selling it, he said.
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