Restructuring Healthcare Entities in Bankruptcy: Unique Challenges and Benefits of Chapter 11

Many healthcare entities are in financial distress; contributing factors include lower reimbursement rates and recent changes in the delivery of healthcare. Uncertainties surrounding the ACA and its potential replacement exacerbates the current financial distress in the healthcare industry. Many companies consider filing for a Chapter 11 restructuring to obtain financial relief while ensuring continuity of healthcare.

A healthcare restructuring involves more legal challenges than a general corporate restructuring due to HIPAA, Medicare, Medicaid and state laws. Before restructuring in a healthcare setting, counsel must anticipate Medicare issues with accounts-receivable financing, the role of the patient care ombudsman, and tax implications for tax-exempt bonds often used to finance a healthcare facility.

Listen as our authoritative panel examines trends in a healthcare entity restructuring, best practices for drafting restructuring terms, and how to mitigate regulatory scrutiny. The panel will also address legal challenges unique to the healthcare industry, such as potential overpayment liability, pending medical malpractice litigation, and complexities for not-for-profit healthcare entities.

1. Developing trends for healthcare restructurings
2. Restructuring terms and provisions
3. Regulatory scrutiny
4. Unique challenges for a healthcare restructuring
   1. Potential overpayment liability
   2. Pending medical malpractice litigation
   3. Complexities for nonprofit healthcare entities

The panel will review these and other key issues:

• What are the current legal trends for healthcare providers involved in or considering a Chapter 11 restructuring?
• What types of regulatory scrutiny should counsel consider in evaluating a healthcare restructuring?
• What steps should counsel take to ensure compliance with HIPAA, AKS and Stark Law during a restructuring?