As the largest health care law firm in the United States, Polsinelli has used its national platform to create a unique, cross-disciplinary group that concentrates exclusively on distressed health care situations. The multi-disciplinary team – which includes corporate, restructuring, regulatory, real estate, and health care attorneys -  focuses on helping struggling health care companies identify and implement strategies to maximize value and preserve operations, and helping buyers acquire distressed health care assets or companies. 

Speed and cross-disciplinary expertise is key when it comes to fast-moving distress scenarios, and each member of the team has deep experience at the intersection of health care and insolvency. Our team focuses full-time on the many overlapping aspects of distressed health care, handling emergency mergers and acquisitions, workouts, restructurings, recapitalizations and refinancings. 

Polsinelli’s Distressed Health Care team’s experience spans the health care industry, including senior housing and post-acute care, rural and safety net hospitals, acute care facilities, health care services, life sciences and technology. Recent engagements for the distressed health care practice group include: 

  • Chapter 11 debtor’s counsel to Senior Care Centers, the largest skilled nursing operator in Texas with over 100 facilities (2018-19). 
  • Chapter 11 debtors’ counsel to EBH Topco, LLC and Elements Behavioral Health, a leading national provider of behavioral health services (National 2017-18).
  • Chapter 11 debtors’ counsel to Curae Health, Inc., a not for profit rural health care company operating a chain of rural safety net hospitals (Southeast 2018-19).
  • Chapter 11 debtor’s counsel and corporate counsel to Clare Oaks, a not for profit, 41 acre continuing care retirement community (Illinois 2019).
  • Counsel to Welcov Healthcare in the emergency transfer of over twenty skilled nursing facilities and subsequent consensual corporate dissolution proceedings (Minnesota  2018). 
  • Counsel to a private equity fund in the multi-state, 65 facility receivership of Fortis Management Group and its affiliates (National 2017-19).
  • Counsel to Kindred Healthcare in its acquisition of LTAC assets from the Promise Healthcare Chapter 11 proceedings (National 2018-19). 
  • Counsel to a private-equity-funded buyer in the acquisition of four CCRC facilities out of the Sears Methodist Chapter 11 in Texas for more than $80 million (2014-15).
     

Believing that proprietary market intelligence is one of the most important services that a law firm can provide to clients, Polsinelli owns and publishes the quarterly Polsinelli/TrBK Health Care Services Distress Research Index (www.distressindex.com), comparing distress in the health care sector to distress in the overall US economy. The Index is regularly cited by Bloomberg, The Wall Street Journal, Modern Healthcare and Healthcare M&A News, among others.

Recognizing the nature of health care as a fully regulated business, our team works closely with our regulatory lawyers to develop solutions that fit within the complex U.S. regulatory scheme. Team members also collaborate with attorneys across the firm’s practices areas, such as tax, employee benefits, real estate and litigation, to provide the specific knowledge and resources necessary to efficiently address a health care institution’s challenges.

Our attorneys counsel health care providers, private equity funds, landlords and purchaser’s in the distressed health care arena. Whether it is a workout, Chapter 11 reorganization proceeding, recapitalization or distressed sale transaction, our attorneys assist clients in making informed decisions and crafting effective approaches regarding their financial situations and business goals. 

Our experienced team includes the authors and editors of three books related to health care and/or insolvency, the developers of a financial research index comparing distress in the health care services sector to distress in the overall U.S. economy, editors of the health care columns for The Journal of Corporate Renewal and The ABI Journal and members of industry organizations such as the American Health Lawyers Association, the Association for Corporate Growth, the Turnaround Management Association and the American Bankruptcy Institute.

  • Lead counsel to client and their 120 affiliates in the largest senior care nursing home Chapter 11 case in 2018, with more than 128-unit senior care nursing home debtors in the Chapter 11 filing in the Northern District of Texas. Lead counsel to the Chapter 11 debtors, operator of 20 behavioral health centers across the country that had approximately $150 million in first lien debt, $44 million in second lien debt and more than $50 million in unsecured debt. Representation included securing the approval of the sale in the Bankruptcy Court and handling all other substantive matters for the company including corporate, transaction, regulatory, labor and employment, litigation, as well has having a Polsinelli attorney on secondment to the client. 
  • Represented client in the restructuring of an operator of 65 skilled nursing facilities across six states. The firm serves as counsel to the REIT owner of the underlying real estate. The matter has involved the successful transition of all 65 facilities over a one year period and the restructuring of the portfolio. In addition, more than 6,000 jobs were saved as part of the restructuring.
  • Lead counsel to a nonprofit health system formed to address the needs of rural health care and its debtor affiliates in their Chapter 11 restructuring in the U.S. Bankruptcy Court for the Middle District of Tennessee, Nashville Division. 
  • Represented a publicly traded health care REIT in the restructuring of a development company focused on senior living in Texas and Illinois from the entities to new operators and representation as an unsecured creditor in the Chapter 11 bankruptcy case and its affiliates pending in the U.S. Bankruptcy Court for the Northern District of Texas.
  • Lead counsel to a company operating long-term care, short-term care, assisted living facilities and home health agencies, in its financial restructuring and sale of substantially all assets, including representation as lead debtor’s counsel in its involuntary bankruptcy proceedings in the U.S. Bankruptcy Court for the District of Minnesota. 
  • Lead counsel to publicly traded Chapter 11 debtor that was a biotechnology startup focusing on orphan drug treatments. 
  • Represented client as a secured lender in the workout and restructuring of a publicly traded REIT that owns 13 skilled nursing facilities located in the Southeastern and Midwestern regions of the United States. 
  • Represented the operator of seven skilled nursing and assisted living facilities located in Louisiana and California in an operational transition and lease dispute with its landlord. 
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