Andrew H. Sherman, Chair of the Sills Cummis Creditors’ Rights/Bankruptcy Reorganization Practice Group, was interviewed for this article covering the current state of hospital bankruptcies throughout the U.S. as well as retrospective coverage of 2019.
“A quiet crisis is unfolding for U.S. Hospitals, with bankruptcies and closures threatening to leave some of the country’s most vulnerable citizens without care.
“As a gauge of distress in the health-care sector has soared, at least 30 hospitals entered bankruptcy, according to data compiled by Bloomberg,” according to the article.
The article later states, “The usual playbook for managing distress doesn’t readily apply. Shutting down a hospital isn’t the same as boarding up a storefront. Hospitals are not only major employers, their closures often leave the most vulnerable patients bereft. Bankruptcy judges tend to push back on approving hospital closings in ways they wouldn’t for a retailer, said Andrew Sherman, head of restructuring at law firm Sills Cummis & Gross P.C.”
“In a typical restructuring you’re dealing with widgets,” Sherman said. “In a health-care restructuring you’re dealing with people’s lives.”