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.

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.