Health-Care Bankruptcy: Chapter 11 Battleground for Reimbursement Litigation and Payer Disputes

Various factors, including increased competition and reimbursement landscape challenges, have led hospitals, health systems, physician groups, assisted living facilities and other providers to file for bankruptcy over the last few years. For the remainder of 2017, due in part to the current uncertainty in the health-care industry concerning legislative proposals, more financially distressed providers will be considering Chapter 11 bankruptcy to effectuate closures, consolidation, restructurings and related transactions. A provider confronts a variety of issues in Chapter 11 including (a) judicial oversight of patient care and records, (b) a shift in the landscape of reimbursement litigation, government receivables and payer ...