There has been a significant wave of health care provider consolidation driven by the desire to achieve scale in response to declining patient volumes and reimbursement, increasing costs, health care reform and the need for capital to implement improvements in the delivery of care, development/expansion of their physician networks and to make needed upgrades in IT, especially electronic medical
In his 2009 State of the Union Address, President Barack Obama urged Congress to confront the “crushing cost of health care,” claiming that “[t]his is a cost that now causes a bankruptcy in America every thirty seconds.” Like-minded lawmakers subsequently introduced legislation to provide certain bankruptcy protections for medically
Hospitals and other healthcare providers are facing significant financial and fiscal pressures. The recession and the sluggish recovery reduced personal incomes and, therefore, the demand (if not the actual need) for healthcare services. Pharmaceutical therapies and ambulatory surgical centers had previously reduced hospital admissions and revenues. Reduced reimbursements by Medicare, Medicaid, and private insurers have further suppressed revenues.
The following hypothetical demonstrates the scope and application of §327(a) to competing neighboring urban hospitals: Two nonprofit hospitals are separated by three miles in a densely populated low-income urban community. Holy Mackerel sits at one end of Main Street while Baruch Gefilte is at the other. Both are suffering financial difficulties.
For more than 150 years, those living in Manhattan’s Greenwich Village relied on the health care services of St. Vincent’s Catholic Medical Center. In April 2010, after years of financial struggles, the hospital’s board of directors made the difficult decision to file for chapter 11.  Due to St.
Is medical debt the primary cause for most consumer bankruptcy cases, and if so, can the current push for medical bankruptcy reform really reduce the number of consumer bankruptcies? No, say Amy Y. Landry and Robert J. Landry, III, authors of a recently published article addressing this topic, printed in the Spring 2011 issue of the ABI Law Review.
The health care industry is one of the most regulated industries with extensive federal and state governmental oversight. For instance, the industry is largely financed by monies paid under the Medicaid and Medicare programs, which require health care facilities receiving these monies to submit cost reports to federal and state governments that substantiate the monies received.
In this age of pre-packaged, pre-negotiated, and chapter 11 liquidation cases filed to effectuate a sale, it is becoming increasingly rare to work on chapter 11 cases that are filed without a clear exit strategy, much less one where the debtor is able to successfully reorganize.
Almost two years ago, the financial markets collapsed and big banks came running to the government for a bailout. Public opinion held that an era of irresponsible lending and unquestioned growth in the U.S. housing market precipitated the economic downfall of late 2008, just as Barack Obama was campaigning to become our next president.
In In re Karykeion, currently pending in the U.S. Bankruptcy Court for the Central District of California, the court recently reviewed the application of § 1113 of the Bankruptcy Code in the context of the liquidation of a chapter 11 debtor that had been operating two acute care hospitals.
Dentons Bingham Greenebaum
KEWA Financial Inc.
Porzio, Bromberg & Newman, P.C.
Grant Thornton LLP
Garfunkel Wild, PC
Great Neck, NY
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New York, NY