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ADLI - AMERICAN MEDICAL TECH

GORDIAN MEDICAL, INC. dba
AMERICAN MEDICAL TECHNOLGIES

Gordian Medical, Inc. dba American Medical Technologies (AMT)
Chapter 11 Fact Sheet



Date Filed:
February 24, 2012


Where:
U.S. Bankruptcy Court for the Central District of California in Santa Ana


Entity Filed:
Gordian Medical, Inc. dba American Medical Technologies


Bankruptcy Case No.:
8:12-bk-12339


Judge:
Mark Wallace


Debtors’ Headquarters:
Gordian Medical, Inc. dba American Medical Technologies
17595 Cartwright Road
Irvine, CA 92614
Tel: [phone]


Company Officers:
Gerald Del Signore
President and Chief Executive Officer


Debtors’ Counsel:

Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd, 13th Fl
Los Angeles, CA 90067
Tel: [phone]

Samuel R. Maizel, Esq.
Tel: [phone]
Email: [e-mail]

Mary D. Lane, Esq.
Tel: [phone]
Email: [e-mail]

Scotta McFarland, Esq.
Tel: [phone]
Email: [e-mail]



Financial Advisor:

GlassRatner Advisory & Capital Group, LLC
19800 MacArthur Blvd., Suite 820
Irvine, CA 92612
Tel: [phone]

J. Michael Issa
Tel: [phone]
Email: [e-mail]

Kerry Krisher
Tel: [phone]
Email: [e-mail]



Media Contacts:

The Abernathy McGregor Group, Inc.
707 Wilshire Blvd., Suite 3950
Los Angeles, CA 90017
Tel: [phone]
Fax: [phone]

Rivian Bell
Cell: 310-463-9229
Pager (24/7): 888-477-4319
Email: [e-mail]

Sydney Isaacs
Tel: [phone]
Email: [e-mail]




Gordian Medical, Inc. Voluntarily Files Under Chapter 11 to Stabilize Finances
While Medicare Dispute Is Resolved


Company to Continue Wound Care Services Without Interruption


IRVINE, Calif. – Feb. 24, 2012 – Gordian Medical, Inc. dba American Medical Technologies (AMT), today filed its voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the Central District of California in Santa Ana. A leading wound care specialist operating in 49 states, AMT filed its petition as the most effective means of stabilizing its finances as it resolves a recent guidelines dispute with Medicare, which the company believes is improperly withholding its payments.


According to Gerald Del Signore, president and CEO, “AMT has performed well for years and maintained healthy operating momentum and consistent sales growth despite a sluggish economy. Our business is strong, and we are proud of our record of care. Each month we provide the supplies and educational services necessary to treat more than 14,000 patients with serious wounds throughout the United States. These patients, most of whom are elderly, non-ambulatory, and confined to hospice or long term care facilities, are among the most frail and medically complex participants in the Medicare system. These patients have paid for Medicare coverage, and like anyone covered by health insurance, they’re entitled to receive the benefits for which they’ve paid.


“Nevertheless, Medicare has withheld payment for these patients’ benefits in a manner that is at odds with the agency’s own guidance and inconsistent with the way it has paid claims for years. We dispute Medicare’s right to handle payment issues in this manner, and if Medicare persists, we are going to ask the Court for relief. There is significant case law and regulatory authority to support our position, and we look forward to reaching a positive conclusion.


“Today’s Chapter 11 filing will allow us to continue operating without interruption while we resolve these issues as expeditiously as possible. The automatic stay that went into effect with the filing of the petition will allow our existing funds to support our operations during this time. We pledge to continue providing the same high level of service that has distinguished our organization to date.”


AMT provides dressings to patients with various wound types, including those with gastrostomy tube sites whose wounds have developed complications. For years, AMT has provided such dressings in reliance on Medicare guidelines which state that “Dressings over a percutaneous catheter or tube … are covered as long as the catheter or tube remains in place and after removal until the wound heals.” Notwithstanding this unambiguous language, Medicare now refuses to pay AMT’s claims for dressings supplied to treat complications at G tube sites. Moreover, although dressings to compromised G tube sites constitute less than 40 percent of AMT’s business, Medicare has suspended 100 percent of AMT’s payments.


AMT’s dispute with Medicare is based on conflicting interpretations of the agency’s own guidelines. AMT has not been accused of fraud, it is not in legal trouble, and it is not on any list of “excluded entities.”

The company is submitting its motions to the Court to maintain business in the ordinary course, including employee compensation and benefits, which is commonplace in such cases. The company’s vendors will be paid in the ordinary course going forward, and management is optimistic it will be able to satisfy pre-petition claims fully when the case is completed.


AMT is being advised by Pachulski Stang Ziehl & Jones LLP as legal counsel and GlassRatner Advisory & Capital Group LLC as financial advisor.

For additional information about the filing, please visit www.gordianmedical.com.


About Gordian Medical, Inc. dba American Medical Technologies
Headquartered in Irvine, Calif., Gordian Medical, Inc. doing business as American Medical Technologies, is a leading independent provider of wound care management solutions. A privately held corporation, AMT offers wound care supplies and education primarily to long-term care nursing facilities and hospices and helps treat serious wounds in more than 14,000 patients per month. The company is licensed, bonded, and accredited in all subject areas and is compliant with current Centers for Medicare & Medicaid Services (“CMS”) standards. AMT employs approximately 394 people of whom 224 are nurses and physical therapists who qualify as “Certified Wound Specialists” or the equivalent.