vol 17, num 2 | June 2020
 
 
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Health Care
 
AN ABI COMMITTEE NEWSLETTER
 
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► In This Issue:
 
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Hospital Liquidity in the COVID-19 Pandemic: Early Actions Are Critical to Financial Recovery
Jim Porter photo
 
Jim Porter
ToneyKorf Partners, LLC
Charlotte, N.C.
 
Richard B. Becker photo
 
Richard B. Becker, M.D.
ToneyKorf Partners, LLC
New York
 
 
Vast Upheaval to an Already Fragile Ecosystem
In less than 12 weeks, COVID-19 has disrupted life, perhaps more than any event in our generation. The nation’s response is remarkable for its teamwork, compassion and commitment, especially the health care community, which despite dire shortages of resources has unified to deliver its critical services to meet unprecedented demand. The U.S. Congress has passed several legislative actions to support individuals, small businesses and health care organizations.

Unfortunately, hospital management teams may have a false sense of comfort by the increased patient census resulting from COVID-19, and the balance sheet boost from stimulus funding, including Medicare advances. However, with the increased costs of temporary staff, overtime and supplemental pay, additional personal protective equipment, and many other related costs either becoming due or now past due, the current levels of stimulus funding will not indefinitely cover the lost income and fixed costs of operations. Many hospitals, especially community and rural hospitals, have cut their elective procedures and bought supplies only to have empty beds and higher costs. Major hospital systems across the country, such as Detroit Medical Center, UK Healthcare (Lexington, Ky.) and Dallas-based Steward Health, have implemented cost-cutting measures that include furloughs, salary cuts and even hospital closures — all actions indicative of the severe and abrupt impact of the pandemic, regardless of geography.

 
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On the Brink: Rural and Safety-Net Hospitals
Stephen M. Kindseth
 
Stephen M. Kindseth
Zeisler & Zeisler, P.C.
Bridgeport, Conn.
 
 
While the Coronavirus Aid, Relief and Economic Security Act and the Paycheck Protection Program and Health Care Enhancement Act provided $175 billion in relief funds to health care providers generally, those funds were not devoted solely to hospitals and were distributed based on various criteria that did not correspond to financial need. Consequently, many rural and safety-net hospitals[1] still face extraordinarily daunting financial challenges. Bankruptcy and other insolvency professionals focusing on health care providers would be well-served to better understand the nuanced dynamics involved.
 
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Announcing ABI’s COVID-19 Resources Page!
COVID-19/Coronavirus Bankruptcy Industry News
Check out our brand-new COVID-19 Resources Page! Developed for both bankruptcy professionals and the public alike, the page houses links to essential information and analysis regarding the financial distress being inflicted by the COVID-19 pandemic. The site features exclusive ABI content on the crisis, recommended member analysis, industry sector news, charts and more.
 
COVID-19 Resources
 
 
 
Health Care Committee Leadership for 2020
The Health Care Committee is proud to announce our new leaders for 2020!

You can also visit the committee's homepage for more newsletter articles, relevant recordings and other committee information.

The committee is always eager to welcome new volunteers. Please contact any member of our leadership team to find out how you can get involved.

Andrew Helman
 
Andrew C. Helman
Co-chair

Murray Plumb & Murray
Portland, Maine
 
 
Daniel I. Waxman
 
Daniel I. Waxman
Co-Chair

KEWA Financial Inc.
Lexington, Ky.
 
 
Warren J. Martin Jr.
 
Warren J. Martin, Jr.
Communications Manager

Porzio, Bromberg & Newman, PC
Morristown, N.J.
 
 
Elizabeth J. Austin
 
Elizabeth J. Austin
Education Director

Pullman & Comley, LLC
Bridgeport, Conn.
 
 
Liz Nicolle Boydston
 
Liz Nicolle Boydston
Membership Relations Director

Polsinelli
Dallas, Texas
 
 
Adam t. berkowitz
 
Adam T. Berkowitz
Special Projects Leader

Garfunkel Wild, PC
Great Neck, N.Y.
 
 
Brian Bonaviri
 
Brian Bonaviri
Special Projects Leader

Grant Thornton LLP
Charlotte, NC
 
 
 
 
 
 
 
 
Central States Virtual Bankruptcy Workshop
 
 
 
Pre-Bankruptcy Planning
 
 
 
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