From Modern Healthcare
By Beth Kutscher
Healthcare providers have gotten some balance sheet relief thanks to a greater number of paying patients over the past couple of years. But bankruptcy filings suggest the industry has recovered more slowly than the improving economy would suggest.
It's not the Affordable Care Act by itself that's pushing healthcare providers into bankruptcy, but a combination of forces including litigation, payment delays and even bad merger agreements.
“In the general U.S. economy, distress has dropped off 60% to 65%,” said Bobby Guy
, a Nashville-based healthcare attorney at law firm Polsinelli. “In healthcare, it has gone up.”
Polsinelli conducted an analysis of healthcare providers in distress, using Chapter 11 filings for healthcare services firms with more than $1 million in assets. The analysis included 83 organizations.
“We did not see the Affordable Care Act being mentioned very much,” Guy said. “It was often issues that snuck up on companies or a convergence of factors.”
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