Of all the industries most adversely affected by the global pandemic, the nursing care sector — comprised of both post-acute and long-term-care providers — has suffered greatly. The pandemic presented unthinkable operational challenges to the skilled-nursing sector in particular, resulting in significant adverse financial consequences.

While the Coronavirus Aid, Relief and Economic Security Act and the Paycheck Protection Program and Health Care Enhancement Act provided $175 billion in relief funds to health care providers generally, those funds were not devoted solely to hospitals and were distributed based on various criteria that did not correspond to financial need.

The health care industry continues to face financial challenges, as evidenced by more chapter 11 bankruptcy filings and closures by hospitals and other providers, including long-term-care facilities.

The Supreme Court handed a major procedural victory to hospitals in its June 3, 2019, opinion in Azar v. Allina Health Services.[1] By a 7-1 majority, the Court found that the government’s imposition of controversial Medicare payment calculations without a public notice and comment period violated the Medicare Act.