Healthcare Cases—Get Thee To A Specialist, Stat

November 2008
The Bankruptcy Strategist
Malka S. Zeefe

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Healthcare industry bankruptcy cases are unique in complexity and sensitivity.  Hospitals, nursing homes and doctor provider groups, among just a few health industry types, are heavily regulated,can be an area’s largest employer, and provide critical, life saving services. As such, healthcare bankruptcy cases are financially and legally multifaceted, and may contain political dynamics often unseen in other types of bankruptcies.

In 2005 Congress added additional wrinkles to healthcare cases through the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). The effects of BAPCPA are still being tested. While this article addresses some of the important issues raised in the wake of BAPCPA and how some courts have confronted them, no article – let alone this one – can address all nuances. As such, persons uninitiated to the ways of healthcare bankruptcy cases would be wise to read well beyond this article and, if faced with such a case, consider retaining counsel who has experience.