What Increased Bankruptcy Filings Across Health Care Could Mean for Home Health Providers
Industry experts have predicted a rise in home health bankruptcies amid the COVID-19 virus. But home health providers likely won’t be the only ones affected by tighter cash flows and unexpected expenses.
Ultimately, there’s likely to be increased bankruptcy filings across health care, particularly in industries such as skilled nursing and senior living. That, in turn, could also present new opportunities for the home health providers that survive the ongoing crisis.
Across the health care landscape, in general, Chapter 11 bankruptcy filings have become more common in recent quarters — a trend that’s only expected to accelerate post-coronavirus, according to Jeremy Johnson, a shareholder at the law firm Polsinelli, where he focuses on health care restructurings.
“The health care filings are coming,” Johnson told Home Health Care News. “Q3, Q4 and then the beginning of next year is really when you’re going to start seeing health care filings. Right now, there’s an awful lot of money being made available to certain kinds of operators. … But it doesn’t solve a lot of the financial problems; it just makes sure they continue to operate in the interim.”
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Home Health Care News by Bailey Bryant. Published June 1, 2020.