Ropes & Gray Represents Five Human Services Providers in Acquiring More Than $100 Million Worth of FEGS Programs

Ropes & Gray represented five providers in acquiring behavioral health and developmental disabilities programs worth more than $100 million from Federation Employment & Guidance Services (FEGS) through the latter’s bankruptcy process. Until its sudden financial collapse announced November 2015, FEGS was one of New York City’s largest human services providers. FEGS filed for Chapter 11 bankruptcy in March 2015.

Ropes & Gray represented the Jewish Board of Family and Children’s Services, which received final legal and regulatory approval to take over $75 million worth of behavioral health programs from FEGS, making it the largest human services agency in New York City. Ropes & Gray also represented four other providers that serve individuals with intellectual and developmental disabilities: AHRC, New York City; AHRC, Nassau County; HeartShare Human Services of New York; and United Cerebral Palsy of New York City. These agencies acquired millions of dollars of other programs constituting residential and day services for vulnerable and high risk individuals with severe disabilities. The bankruptcy court approved transfers of the FEGS programs, effective as of June 1, 2015, which enables the individuals once served by FEGS to continue receiving care and treatment from these new providers.

The New York-based Ropes & Gray cross-practice team included business restructuring partner Mark Bane and health care partner Stephen Warnke.