Restructure THIS! Episode 29 | Healthcare Restructuring Under Pressure: Medicaid Cuts, Private Equity And The Fight To Keep Hospitals Open With Samuel Maizel (Podcast)

Sheppard’s Restructure THIS! podcast explores the latest trends and controversies in Chapter 11 bankruptcy, commercial insolvency and distressed investing. In this episode, Sam Maizel, partner and chair of Dentons’ Distressed Healthcare group, joins host Justin Bernbrock to discuss why healthcare bankruptcies are unlike any other Chapter 11 case, from Medicare/Medicaid provider agreement disputes to the wave of hospital and skilled nursing facility closures reshaping communities nationwide.

What we discuss in this episode:

• Sam’s transition from infantry officer to the DOJ, then to private practice
• What makes healthcare restructurings different from a typical corporate Chapter 11
• Why hospital closings devastate communities in ways other business failures don’t
• The government’s inconsistent position on Medicare/Medicaid provider agreements
• Why cutting off successor liability matters so much to buyers of distressed hospitals, and how that shapes deal value
• How Sam’s win in In re Verity Health Systems of California used the pre-existing duty rule to reshape how courts treat these agreements, and how the government has since backed off similar fights
• How the treatment of provider agreements impacts the ability to sell a hospital or healthcare facility, particularly in safety net and rural contexts
• The wave of hospital and health system bankruptcies over the last three years and the role private equity has played
• Why skilled nursing and long-term care facilities are the “canary in the coal mine” for financial distress in healthcare
• The looming impact of Medicaid cuts, provider-directed payments (“bed tax”) crackdowns and immigration restrictions on the healthcare workforce
• The outlook for healthcare restructuring activity over the next five to ten years

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