Will Nursing Homes Survive The Implementation Of Programs Designed To Prevent Institutionalized Care?
by: Elizabeth J. Austin
Pullman & Comley LLC; Bridgeport, Conn.
There is no question that the nursing home industry has been battered by bankruptcies and receiverships in recent years, sometimes resulting in the closing of the home. Many factors have impacted the financial viability of nursing homes, not the least of which is the fact that nursing homes depend on Medicare and Medicaid for most of their revenues. Another factor has been the inability of many nursing homes to fill beds because of overbedding. The excess capacity is problematic because it further reduces a nursing home’s revenues when its financial stability is already teetering. To what extent it will continue to be a factor is difficult to predict.
According to data released by the U.S. Census Bureau on Sept. 27, 2007, the percentage of elderly living in nursing homes has steadily declined since 1990. In 1990, 10.2 percent of Americans age 75 or older lived in nursing homes. That number had dropped to 8.1 percent by 2000, and by 2006, only about 7.4 percent were living in nursing homes.
Bailing Out the Government - Chapter 9 for Health Care Districts
by: Gary E. Klausner
Stutman, Treister & Glatt Professional Corp.; Los Angeles
by: Jeffrey H. Davidson
Stutman, Treister & Glatt Professional Corp.; Los Angeles
With state and local governments facing daunting financial challenges, chapter 9 for “government units” is becoming a more likely option. In California, state law permits communities to form “health care districts” that are authorized to issue bonds through public offerings and use the proceeds to establish health care facilities within the district. When a health care district files a chapter 9 case, the intersection between public finance, health care law and bankruptcy creates its own set of novel problems.
Valley Health System (district) is a California local health care district that filed for chapter 9 in December 2007. During the case, Bankruptcy Judge Peter Carroll issued two published decisions that addressed issues not squarely confronted in any previous chapter 9 cases.
27th Annual Spring Meeting
Gaylord National Resort and Convention Center
National Harbor, Md.
April 1-4, 2009
The tough financing market we are all facing is reason enough for committee members to attend the ABI’s 27th Annual Spring Meeting at the Gaylord National Resort and Convention Center in National Harbor, Md. Attending the conference is always a great way to spend time with colleagues in various aspects of bankruptcy practice. The topic for the Health Care Committee panel is particularly timely: “Traditional and Alternative Financing Vehicles for Health Care Available in Today’s Tight Financial Environment.” The superb panel includes Timothy Lupinacci of Baker, Donelson, Bearman, Caldwell & Berkowitz PC; Sarah Sumner Duggan of Capmark; Bob McCarrick of GE Healthcare Financial Services; and Sharyn Beth Zuch of Wiggin and Dana LLP. In light of the current turbulence in the economy and the inauguration of a new president who is looking to make significant changes in health care in the United States, attending this panel is a must for health care practitioners who want to compare notes with colleagues from other parts of the country.
Health Care Program in Chicago for Summer 2009
ABI’s Health Care Committee is putting together a health care program in Chicago this summer. Watch for more information in the next few weeks when the program is launched. Because the health care industry, like the rest of the economy, will certainly be facing significant financial challenges this summer and President Obama has made health care a priority for his administration, attendance at the program will be a must for practitioners dealing with clients and issues in the area of health care.