It is well established that health care businesses are confronted with significant financial challenges, including lower reimbursement rates, constant changes in the delivery of services, increased competition and the need for expensive capital improvements to adopt the latest technology. Recent political uncertainty and heightened government scrutiny has only exacerbated these challenges.
Rural hospitals in America are closing at a rapid pace, and many others are experiencing severe challenges. The statistics reflecting the closings and financial challenges facing rural hospitals are readily available, but that is not the focus of this article.
Bankruptcy court jurisdiction over Medicare issues is increasingly important given the distressed state of the health care industry and skyrocketing level of bankruptcy filings by health care providers. On May 10, 2019, in Benjamin v.
The economic challenges in today’s current health care climate are well documented and run to the core of a fundamental national debate rearing its head in the upcoming 2020 election cycle. “Medicare for All” is more than a sound bite or political posture; the larger issue is whether U.S. citizens believe that access to affordable health care for all is a right in this country.
As any bankruptcy practitioner knows, laws other than the provisions of the Bankruptcy Code can significantly impact a debtor’s reorganization.
[1]An asset sale is an important strategic option for hospitals and other health care facilities in financial distress.
As we close 2015 with more hospital bankruptcies being filed around the country, the ABI Health Care Committee is expecting an interesting year ahead in 2016.
