Strategic Healthcare Restructuring Solutions in Los Angeles and Throughout California

Reliable guidance for medical practices and other healthcare businesses seeking Chapter 11 bankruptcy protection from creditors

Healthcare companies of all kinds throughout California have a duty to provide high-quality services. However, the high cost of keeping medical equipment up to date and the difficulty of recouping payments from patients, insurers and government programs can generate an unhealthy amount of debt. Chapter 11 bankruptcy allows you to restructure your debt load while remaining in business, but it can be difficult to manage some of the specific challenges associated with the medical industry. If you have a healthcare business in need of Chapter 11 protection, the Law Offices of Michael Jay Berger will give you reliable advice and representation throughout the process.

Healthcare business bankruptcy in California

Both the federal government and California impose specific regulatory standards on particular types of healthcare entities, including hospitals, ambulatory centers, patient clinics, doctors’ offices, skilled nursing facilities, intermediate care facilities, rehabilitation centers, psychiatric care facilities, home health agencies and correctional care facilities, and those standards don’t change because of bankruptcy. Moreover, in a Chapter 11 bankruptcy, these standards will be monitored by an ombudsman, who will report to the bankruptcy court if you fail to meet them. Our knowledgeable healthcare business bankruptcy attorneys will work to make sure that you understand all of your legal responsibilities. 

Common triggers for healthcare bankruptcy

Healthcare businesses may need to pursue Chapter 11 bankruptcies for several reasons, including:

• Reduced insurance reimbursements
• Rising operational costs in the Los Angeles market
• Increased competition from healthcare networks
• Regulatory compliance expenses
• Post-pandemic financial strain
• Equipment financing obligations.

We can advise you whether your healthcare business will benefit from a Chapter 11 bankruptcy and represent you it if it does.

Unique challenges healthcare businesses face during bankruptcy

When a healthcare facility files for bankruptcy, the bankruptcy court will order the U.S. Trustee to appoint a disinterested party as an ombudsman charged with monitoring the quality of care and representing the interests of its patients. As part of the duty to monitor patient care, the ombudsman may interview patients and physicians, and must issue periodic reports to the court at least once every 60 days, pointing out if the quality of the patient care you provide is declining significantly or is otherwise being materially compromised. We will advise you on how to deal with the ombudsman and represent your interests forcefully if you are accused of a decline in patient care quality.

Restructuring strategies

The goals of a healthcare Chapter 11 bankruptcy are to resolve debts in accordance with a court-ordered reorganization plan while simultaneously maintaining quality patient care. These twin obligations require close attention to revenue, expenses and the modification of existing obligations. Operational changes that don’t compromise the level of treatment might also be warranted. We offer sound strategies for navigating this complicated process.

Post-bankruptcy success

Optimally, your healthcare business should come out of a Chapter 11 bankruptcy with the financial stability and streamlined operation necessary to support long-term success. From start to finish, our experienced attorneys will identify innovative ways to address your debt issues without ever overlooking the unique challenges that face medical industry clients in the short and long term.  

Contact an accomplished California lawyer for Chapter 11 bankruptcy

Based in Beverly Hills, the Law Offices of Michael Jay Berger helps healthcare businesses navigate the complex requirements of Chapter 11 bankruptcy proceedings throughout Southern California. Call our firm at 310-271-6223 or contact us online for a free consultation.