Hospital and Healthcare Provider Bankruptcies
Navigating Restructuring Options in the Age of COVID-19
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Health
- event Date
Wednesday, June 17, 2020
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will provide healthcare counsel with guidance on the unique legal issues for hospitals and other healthcare providers facing bankruptcy. The panel will discuss how bankruptcy impacts hospital/healthcare provider obligations under Medicare, HIPAA, Stark Law, Anti-Kickback Statute, and WARN Act. The panel will also provide guidance for strategically navigating bankruptcy.
Ms. Kovsky-Apap focuses her practice on bankruptcy and out-of-court workouts. She also has substantial litigation and trial experience in the areas of bankruptcy, commercial and securities law. She handles healthcare matters, representing official committees of unsecured creditors, major unsecured creditors and asset purchasers in Chapter 11 bankruptcies of hospitals, skilled nursing facilities, long-term care and rehabilitation facilities and centrally managed medical clinics.
Mr. Winters has more than 25 years of restructuring experience including over 15 years specializing in healthcare, higher education and not-for-profit sectors. With a particular talent for managing complex problems and navigating the competing interests of multiple stakeholders, he is one of the most experienced ‘middle market’ healthcare bankruptcy and restructuring professionals in the country.
2019 was a record year for healthcare bankruptcies, and 2020 is on track to meet or exceed it as the COVID-19 crisis exacerbates systemic distress throughout the healthcare sector. Many hospitals and healthcare providers are being overwhelmed by the surging costs of caring for COVID-19 patients, while others, away from the front lines, have been forced to severely curtail services or shut down altogether. In an industry already struggling with disruption in the methods of care delivery, revenue cycle management challenges, falling reimbursement rates and unsustainable capital structures, COVID-19 will represent a tipping point for may facilities and providers.
When healthcare providers file for bankruptcy, they need to consider the cascade effect it will have. Healthcare providers face unique issues in bankruptcy, including the impact of the automatic stay on Medicare provider agreements and Medicare/Medicaid recoupments, selling assets in the context of an extensive regulatory scheme, and addressing the interests of numerous stakeholders beyond the creditors and equityholders who drive typical bankruptcies.
Counsel to distressed healthcare providers, their lenders, creditors, and investors must carefully consider the implications of the unique issues when navigating bankruptcy and framing a restructuring strategy.
Our authoritative panel of healthcare restructuring professionals will discuss these issues while demystifying the healthcare bankruptcy process. The panel will also examine potential out-of-court restructuring options.
Listen as our authoritative panel of healthcare attorneys examines the unique aspects that arise when insolvency involves a healthcare facility and healthcare providers. The panel will also discuss potential restructuring options. The panel will explore how bankruptcy impacts hospital/healthcare provider obligations under Medicare, HIPAA, Stark Law, Anti-Kickback Statute, and WARN Act. The panel will guide counsel in strategically navigating bankruptcy.
- Dealing with a customer/vendor/contract counterparty in financial distress
- The Chapter 11 process
- Unique aspects of a healthcare bankruptcy
- Restructuring options
- Impact of the CARES Act
- Government payments and loans for providers
- Expanded access to Small Business Reorganization Act
- Out of court restructuring
- In court restructuring
- Plan of reorganization
- 363 sale
- Impact of the CARES Act
- Best practices for navigating the bankruptcy process for healthcare providers and their creditors
The panel will review these and other key issues:
- What are the special issues facing hospitals and other healthcare providers when it is time to restructure or file for bankruptcy?
- If municipal bonds funded a healthcare facility, who is ultimately liable to the creditors?
- Can Medicare obligations be extinguished in a Section 363 sale?
- What steps can counsel take to ensure compliance with Medicare obligations during the bankruptcy process?
