COVID-19 health care update: Considerations of medical practices and PE portfolio companies during the COVID-19 pandemic



March 17, 2020

Health Care Alert

Author(s): Michele A. Masucci, Michael I. Schnipper, Sarah E. Swank, Joanna Cohen

Business disruption to medical practices is becoming a reality as the challenges to respond to the COVID-19 threat unfold. Dentist offices, physical therapy practices, ambulatory surgery centers, and other outpatient offices are considering whether to limit hours, change staffing, or to close their doors. Working through these issues in real time, our attorneys across the country and globally are tracking the legal requirements, regulatory guidance, and best practices relating to COVID-19. We are here to help you navigate this unprecedented time.

Things you are thinking about—our “preparedness” checklist

Labor and employment

How do you manage changes to your workforce composition?

  • Wages and benefits policies
  • Paid leave requirements
  • COBRA requirements
  • WARN obligations
  • Compliance with collective bargaining agreements
  • Layoffs and furloughs

Health care regulatory

You must keep track of constantly changing requirements and how they affect your operations.

  • Infection control and COVID-19 preparedness
  • CMS regulations and guidance, conditions of participation
  • Medicare and Medicaid payment issues
  • Continuation of care issues
  • Telehealth services
  • Suspending non-essential health care services
  • Section 1135 waivers
  • State licensure

Corporate and contractual

How do you manage cash flows and contractual obligations when your revenue is impacted?

  • Real estate leases
  • Equipment leases
  • Financing and loans
  • Loan and debt agreements
  • Advice on pending health care transactions
  • Force majeure provisions
  • Failure to perform issues
  • Supply chain issues

Updates on COVID-19 laws

You should keep up to date on changing laws regarding COVID-19 that may affect your operations and your rights under the law.

  • Federal legislation, including on financial relief
  • CDC guidance
  • CMS guidance and waivers
  • Statewide and national emergencies

How we can help

Nixon Peabody LLP has a team of attorneys who are available to advise you, your medical practice, and/or portfolio companies on all COVID-19 issues, including:

  • Preparing and drafting policies and procedures
  • Reviewing contracts, leases, and other documents
  • Reviewing employment agreements
  • Your patient and staff communication strategy
  • Preparing frequently asked questions
  • Rapidly responding to your questions and/or to provide you updates as the COVID-19 laws change

The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

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