In today’s rapidly evolving healthcare environment, heightened scrutiny and regulatory changes present unique challenges for industry professionals. The hospital sector had only five bankruptcy filings in 2024, down from 12 in 2023, but the Steward Health Care System filing included 31 hospitals and was the largest hospital bankruptcy in the last 30 years.  This year has already seen 4 hospital systems file bankruptcy cases, including Prospect Medical Holdings with 16 hospitals nationwide.  Current federal budget projections propose $880 billion in cuts over the next decade, which are expected to fall primarily on Medicaid.  Medicaid pays for 19% of all spending on hospital care in the United States.  Absorbing reductions in Medicaid spending could be challenging for hospitals, particularly for those that care for a relatively large share of Medicaid patients. Rolling back coverage would increase the number of uninsured patients, which could result in higher uncompensated care costs.  These cuts could potentially accelerate the pace of hospital bankruptcy cases or outright closures, including in rural areas.  Added to these likely financial pressures, the federal government and state governments are increasing exercising oversight over hospital mergers and acquisitions.  For example, in response to concerns about private equity involvement in healthcare, several states are increasing oversight of hospital sales and mergers, with Attorney Generals playing a key role.  Finally, regulatory pressures continue to mount.  For example, the US Department of Justice’s Health Care Fraud Unit now has over 80 attorneys pursuing allegations of fraud, The healthcare industry plays a disproportionate role in False Claims Act recoveries, accounting for over $1.67 billion, or more than 57 percent, of the total FCA proceeds in FY 2024 (even though it only represents approximately 19% of total GDP).

Join our speakers, Samuel R. Maizel, Director, Distressed Healthcare, and Tania M. Moyron, Chair, Restructuring, Insolvency and Bankruptcy Group, Dentons US LLP, for this CLE webcast as they explore essential strategies and practices necessary to navigate the increasingly stringent regulatory environment and increasing financial situations facing hospitals and effectively capitalize on new opportunities.

Attendees will gain valuable insights into recent legal decisions which allow hospital owners, sellers and buyers, to more effectively manage mergers and acquisitions, all tailored to the current dynamics of the healthcare sector.

Key issues that will be covered in this webinar include:

• How bankruptcy can allow challenges in federal court years earlier than otherwise allowed
• How bankruptcy can limit the powers of state attorney generals in oversight of sales of hospitals
• How bankruptcy can allow the transfer of Medicare and Medicaid provider agreements without successor liability
• How bankruptcy limits the offset rights of the Medicare and Medicaid programs
• How bankruptcy can allow borrowing that primes HUD loans