Catherine A.Ehrgott (Cathy)

Partner

Los Angeles + 1.213.243.2552

Cathy Ehrgott is a transactional lawyer who represents hospitals and health systems, academic medical centers, managed care companies, and other health care and life science companies in implementing innovative integration and alignment strategies. She has extensive experience in leading significant transactions, including mergers and acquisitions, distressed acquisitions and dispositions, joint ventures, affiliations, private placements, and asset and stock purchases and sales for clients throughout the health care industry. Cathy also advises clients in the development and implementation of strategic affiliations, including bundled payment arrangements (BPCIs), clinically integrated organizations/networks (CIOs and CINs), integrated delivery systems (IDSs), management services organizations (MSOs), and other hospital-physician alignment and managed care contracting transactions.

Cathy has considerable experience negotiating health care-related commercial agreements, including pharmacy benefit manager (PBM) and pharmacy rebate agreements. In the managed care industry, she has negotiated operational agreements, including payor, administrative services only (ASO), physician hospital organization (PHO), and vendor agreements, as well as professional, ancillary, and facility provider agreements. She also advises clients regarding general health law issues, including licensure, fraud and abuse, and the Knox-Keene Act.

Cathy is a member of the American Health Lawyers Association and the California Society of Health Lawyers. She previously served on the Executive Committee of the State Bar Business Law Section and was its liaison to the State Bar Health Law Committee where she served in various leadership positions.

Expérience

  • Adventist Health maintains access to emergency services for Montebello community through chapter 11 saleJones Day advised Adventist Health in connection with its acquisition of certain assets of Beverly Community Hospital Association through Chapter 11 bankruptcy proceedings, which closed on September 6, 2023 and allowed Adventist Health to advance ongoing access to necessary emergency department services for the Montebello community in East Los Angeles.
  • Loma Linda University Medical Center forms clinically integrated networkJones Day advised Loma Linda University Medical Center, an academic medical and research center that operates some of the largest clinical programs in the United States, in connection with the development of University Preferred Health Partners (UPHP), a clinically integrated network serving the Inland Empire region of Southern California. 
  • Ambulatory surgery center enters into buyout with partners and converts to outpatient departmentJones Day represented an academic medical center in the buyout of its joint venture partners in an ambulatory surgery center.
  • Medical center resolves investigation regarding 340B purchasing practicesJones Day successfully negotiated a multi-million dollar settlement with the State of California, Health and Human Services Agency, Department of Health Care Services on behalf of a medical center regarding Medicaid reimbursement practices related to the 340B drug discount program.
  • Community hospital successfully negotiates debt obligationsJones Day successfully negotiated and documented the out-of-court restructuring of obligations for a 100+ bed acute care regional hospital in California, enabling it to reduce its projected debts by more than $155 million and avoid a chapter 11 filing.
  • Hoag Memorial Hospital forms regional health systemJones Day assisted Hoag Memorial Hospital Presbyterian in its affiliation with St. Joseph Health to form an integrated regional health system.
  • Dignity Health acquires U.S. HealthWorksJones Day advised Dignity Health, the fifth largest health system in the nation, in its acquisition of U.S. HealthWorks, the largest independent operator of occupational medicine and urgent care centers in the United States.
  • City of Hope forms City of Hope Medical FoundationJones Day advised the City of Hope in connection with the development and formation of City of Hope Medical Foundation (COHMF) and the purchase by COHMF of California Cancer Specialists Medical Group (CCSMG) and Oncology Specialists of COH (OSCOH).
  • Daughters of Charity considers acquisition of Downey Regional Medical CenterJones Day represented Daughters of Charity Hospital System in its efforts to acquire Downey Regional Medical Center, a chapter 11 debtor, through a plan of reorganization.
  • Capital BlueCross institutes prescription drug programJones Day negotiated a PBM agreement with a national pharmacy benefit manager to administer a prescription drug program for Capital BlueCross' health care benefit programs.
  • Banner Health merges with Arizona Medical ClinicJones Day assisted Banner Health, a nonprofit corporation, in the stock purchase of and merger with Arizona Medical Clinic.
  • Loma Linda part of acute care hospitalJones Day assisted Loma Linda University Medical Center with its purchase of membership interests in a joint venture with physicians.
  • Ellison Technologies acquired by Mitsui and Mori SeikiJones Day advised Ellison Technologies, Inc., a U.S. producer of machine tools, in the acquisition of a controlling interest by Mitsui & Co. and Mori Seiki Co., Ltd.