In this age of pre-packaged, pre-negotiated, and chapter 11 liquidation cases filed to effectuate a sale, it is becoming increasingly rare to work on chapter 11 cases that are filed without a clear exit strategy, much less one where the debtor is able to successfully reorganize.
Almost two years ago, the financial markets collapsed and big banks came running to the government for a bailout. Public opinion held that an era of irresponsible lending and unquestioned growth in the U.S. housing market precipitated the economic downfall of late 2008, just as Barack Obama was campaigning to become our next president.
In In re Karykeion, currently pending in the U.S. Bankruptcy Court for the Central District of California, the court recently reviewed the application of § 1113 of the Bankruptcy Code in the context of the liquidation of a chapter 11 debtor that had been operating two acute care hospitals.
The crash in the residential housing market has effected many Americans, but the downturn has had a particularly disruptive effect on many senior citizens, especially those seeking to gain admission to, or currently living in, continuing-care retirement communities (CCRC).
The Patient Protection and Affordable Care Act (PPACA), passed by the Senate on Dec. 24, 2009, and signed into law by President Barack Obama on March 23, 2010, is the basis for the U.S’s current experiment in health care reform.
The proposals for comprehensive health care reform currently being considered by the U.S. Congress are extensive. Comprehensive reform will likely cost between $800 billion and $900 billion. To pay for this undertaking, Congress is fundamentally restructuring tax policy, provider payments and insurance markets.
Following a year of extreme economic turmoil, lawmakers in Washington have turned their attention to the reform of an industry that the Wall Street Journal called “one of the brightest spots in an otherwise gloomy economy”—the health care industry.
Long-term care facilities continue to be battered by a barrage of financial challenges, and there seems to be no end in sight. Most recently and at the forefront in today’s news is the impact of the proposed health care reform on long-term care facilities.
The addition of §333 to the Bankruptcy Code as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)generated significant controversy because it mandates the appointment of a patient care ombudsman (PCO) if the debtor is a health care business, unless the court finds that “the appointment of such ombudsman is not necessary for the protection of patients u
ABI’s Health Care Triage: 2009 conference on June 26, 2009, in Chicago was a great success. Co-sponsored by the Beazley Institute for Health Law and Policy at the Loyola University Chicago Law School, the conference was the first stand-alone health care conference sponsored by ABI. The partnership between Loyola and ABI for the conference proved very fruitful.
New York, NY
KEWA Financial Inc.
Porzio, Bromberg & Newman, P.C.
Grant Thornton LLP
Perkins Coie LLP
Special Projects Leader
Dentons US LLP
Vernon Hills, IL