Health Care Restructuring

Our Approach

With complex regulations and operating costs on the rise, and reimbursements falling, health care clients are facing short- and long-term hurdles.

Our cross-practice health care restructuring team helps owners and operators address the full spectrum of issues in today’s health care landscape—regulatory compliance, financial management, labor and employment issues, and real estate among them.

If restructuring or insolvency proves the correct path, we bring extensive experience with a variety of future-oriented options, from company-driven restructurings to Chapter 11 reorganizations.

We create effective debt restructuring and workout plans for clients and manage the applicable health care, labor, finance, antitrust, tax, and corporate law issues, centering health care organizations’ specific needs, history, and role in the community.

We Work With

• Hospitals
• Physician practices
• Skilled nursing facilities
• Home health care providers
• Medical device manufacturers
• Private equity portfolio companies

We partner with our clients throughout:

• Mergers and acquisitions
• Recapitalizations
• Stock and asset purchases
• Regulatory compliance/analysis
• Due diligence analyses
• Business, legal, and management issues affecting portfolio companies
• Affiliations and joint ventures
• Restructurings in and out of bankruptcy
• Real estate transactions
• Employment agreements

Representative Experience

• Represented Wachusett Ventures LLC, a skilled nursing operator in Massachusetts and Connecticut, in severe financial distress due to macroeconomic and industry-wide economic issues impacting the skilled nursing industry.
• Served as restructuring counsel in the Chapter 11 bankruptcy case of the nonprofit health care system of St. Francis Hospital and Health Centers (NY) to effect a merger of the two systems.
• Representing several large health care systems in planning and effecting mergers and acquisitions and in capitalizing on the myriad novel resources made available by the CARES Act and other similar legislation.
• Representing a number of physician groups in all aspect of the insolvency planning including acquisitions, dispositions, and contract negotiations.
• Representing private equity funds and other investors in the targeting and acquisition of troubled health care businesses, as well as the development of restructuring plans for current portfolio companies facing financial difficulties.
• Representing a number of clients with Section 242 HUD health care loans.
• Represent a number of health care clients in out-of-court restructurings including moratoriums, compositions, and secured creditor, lender work-outs and Article 9 sales.
• Represented Connecticut-based, nonprofit health care system, Lawrence + Memorial Corporation, on its acquisition of the assets of Rhode Island’s Westerly Hospital and certain affiliated companies out of a state court insolvency proceeding.
• Represented Illinois-based nonprofit senior living provider, VibrantLiving Communities & Services, and its affiliates in Chapter 11 bankruptcy case.
• Representing a for-profit cancer center in an out-of-court restructuring involving the refinancing of over $500 million in debt, related equity raise, sale of cancer treatment center in major Midwest market, and cross-border restructuring of bank debt for a facility in major West Coast city.
• Representing in connection with various receiverships throughout the United States, including Massachusetts, Rhode Island, Virginia, New York, Las Vegas, and California.
• Confidential representation of shareholders in the analysis and negotiation of rights against a hospital and its board of directors for impermissible distributions and transfers in and before a current assignment for the benefit of creditors.
• Representing multiple hospitals in acquiring assets from various bankrupt health care estates, negotiating assumption of lease and operating contracts.
• Confidential representation of a continuing care retirement community (CCRC) in connection with line-of-credit restructuring, involving secured bond issuances.
• Represented Newcare Health Corporation Chapter 11 and its 21 related debtors (which operated 17 nursing homes, an acute care hospital, and hundreds of management contracts for long-term care facilities in Texas, Massachusetts, Georgia, Florida, and Kansas) in the successful § 363 sale of facilities.
• Represented bond trustee and other secured creditors in Chapter 11 restructuring of Quincy Medical Center.
• Represented secured creditor in hospital Chapter 11 of Northern Berkshire Medical Center.
• Represented New Hope Healthcare Services in its acquisition and financing of a nursing home.