Healthcare Financing

Our Approach

Access to capital remains necessary for healthcare organizations to thrive. Our experience as counsel on a wide range of projects and financing techniques—together with our knowledge of tax and securities law—enables us to advise clients on the best transaction structure and documentation for their needs. We have served as borrower’s counsel, underwriter’s and disclosure counsel, and bank counsel for healthcare providers, banks, underwriters, issuers, and indenture trustees. We also represent healthcare organizations subject to Internal Revenue Service audits and those in financial distress regarding compliance with financial covenants and the restructuring of their debt obligations.

Our national healthcare practice strengthens our healthcare Finance team. We understand the business of healthcare and the complex legal landscape that providers face in an industry undergoing massive reinvention and transformation. Our team has a rich understanding of the health industry’s dynamics regarding business, regulations, and competition. The attorneys and resources in our healthcare practice support the many areas of law affecting healthcare providers, including licensing and certificates of need, government investigations and compliance counseling, information technology and privacy, reimbursement and managed care contracting, and hospital/physician alignment strategies. This depth of knowledge is invaluable when performing due diligence on behalf of our clients and addressing any disclosure or other legal issues that may arise.

Post-issuance compliance and enforcement

Our client relationships do not end when the original financing transaction is complete. We handle post-issuance compliance and enforcement issues, including continuing disclosure compliance, program administration, IRS audits, SEC investigations, arbitrage rebate calculation, and investment placement and management. We counsel healthcare organizations affected by adverse financial conditions that affect their ability to comply with financial covenants and healthcare laws and regulations, including those who are unable to pay or who have defaulted on debts and are seeking bankruptcy or other workout scenarios.

We Work With

• Hospitals and health systems, including academic medical centers, critical access and rural hospitals, Catholic and other faith-based hospitals and health systems, and hospital districts and other government-owned healthcare facilities
• Continuing care retirement communities
• Assisted living facilities
• Skilled nursing facilities
• Physician practices

Recent Experience

• Represented a large financial institution in connection with the public offering of over $635 million of tax-exempt and taxable bonds issued on behalf of three different hospitals. The transaction allowed these healthcare systems to refinance existing indebtedness and to construct and equip new healthcare facilities. Our representation included advising our clients regarding the structure of each transaction, drafting various public offering documents and negotiating disclosure and purchase agreements.
• Represented a hospital in connection with its borrowing of over $195 million of tax-exempt bonds issued on its behalf to construct and equip a new general acute care hospital tower.
• Served as counsel to the underwriters in a $484 million refunding for an Illinois academic medical center and affiliated hospital system.
• Represented one of the largest Catholic health systems in the Midwest in a $285 million financing for a replacement hospital and expansion projects at four other facilities.
• Represented a large Catholic health system with the consolidation of the master trust indentures of its pre-merger legacy organizations. We negotiated with bondholders and bank creditors holding approximately $1 billion of outstanding bonds. We also advised this client regarding the remediation of tax-exempt bonds following the sale of certain bond-financed facilities.
• Served as bond counsel to two local economic development corporations in an $81 million financing for one of the largest hospital systems in New York.
• Served as special corporate counsel to one of the largest integrated health systems serving the Intermountain West with an $80 million variable rate financing requiring no third-party liquidity support.