Publications & Presentations
September 2, 2021

Healthcare Bankruptcy Filings Hit ‘Unprecedented' Low

Quoted, Modern Healthcare

New data show that healthcare provider Chapter 11 filings flatlined during the pandemic because government aid kept companies afloat.

When the COVID-19 pandemic hit in early 2020, many predicted a crush of healthcare bankruptcies would follow. So far, the opposite has happened.

Billions of dollars in federal, state and local aid that's flowed to healthcare providers has led to what the law firm Polsinelli calls an "unprecedented" drop in Chapter 11 filings in an industry that's typically among the most distressed. In fact, Polsinelli's second quarter report shows the lowest ever recorded distress index in the healthcare industry since 2010.