Bankruptcy Sale Considerations and Pitfalls To Avoid for Healthcare Providers
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June 19, 2025
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This article was originally published by AIRA in May 2025. The publication is available at: https://aira.org/pdf/journal/2025_v38_n2.pdf.
Q2 2025 Healthcare Quarter in Review
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Healthcare providers undergoing bankruptcy face unique pressures, from regulatory hurdles to the imperative of maintaining patient care. In this insightful article, FTI Consulting turnaround and restructuring expert Joseph Richman outlines critical considerations and potential pitfalls that healthcare debtors and advisors should anticipate in the 363 sale process. Topics addressed include how ombudsman reports can affect marketability, why Medicare provider agreements require nuanced legal strategy, and how transition service agreements can bridge operational gaps. The author advocates for a proactive, informed approach—where debtors not only prepare for ombudsman scrutiny and CMS complexities but also use creative bidding strategies to enhance buyer interest. The piece cautions that failure to secure adequate post-petition financing could lead to administrative insolvency, undermining patient safety and sale outcomes. For stakeholders aiming to navigate these high-stakes scenarios effectively, the article offers a timely, detailed and practical framework.
Reprinted with permission from AIRA Journal
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June 19, 2025
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