Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistFeaturesBankruptcyHealth Care LawLitigationRegulation

Due Diligence in Distressed Community Hospitals

By Deborah Williamson, Mark Andrews and Richard Y. Cheng
August 01, 2018

The Patient Population?

The Projected CAPEX

Cash Flow Hurdles

Family Rehabilitation, Inc. v. Azar
  • How effective has the hospital been in the structuring of “bundled” payments when compared to the actual costs of episodes of care?
  • What is the count for “licensed” beds vs. the number of beds which could actually be occupied at “peak” capacity?
  • What is the payor mix? What is the percentage of Medicare, Medicaid, third party insurance, high deductible patients, private pay and/or uninsured?
  • Is there a history of underpayments, slow or delayed payments by third party administrators (TPAs) (which processes insurance claims or aspects of employee benefit plans)? Is the reimbursement rate similar to that of competitors?
  • Is revenue being lost to ambulatory centers, outpatient facilities, area hospital systems or specialty clinics? Are the number and type of competitors increasing, changing or static?
  • What is the status under the Hospital Readmissions Reduction Program which reduces reimbursement rates for “excess” patient readmissions?

Regulatory and Compliance Reviews

e.g. e.g.

Governmental Claims

qui tam qui tam Qui tam qui tam

Opportunities

e.g.

Exit Issues

The National Conference of State Legislatures
  • Is there a pharmacy? If so, is it owned by the facility or operated by a third party?
  • Is there a fragile patient population? If so, how long will it take to transfer all patients? How long will it take to stop admitting new patients?
  • Is there an emergency room? If so, what is the process for diversion?
  • Is there leased equipment? Can the equipment be moved?
  • Who will take responsibility for the patient records? What is the cost for storage of records? Who will notify former patients regarding the location of their records?
  • Are there land use restrictions? Can any restrictions be easily modified?
  • Will the property need to be re-zoned?

Conclusion

***** Deborah Williamson [email protected] Mark Andrews [email protected] Richard Y. Cheng [email protected]

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Overview of Regulatory Guidance Governing the Use of AI Systems In the Workplace Image

Businesses have long embraced the use of computer technology in the workplace as a means of improving efficiency and productivity of their operations. In recent years, businesses have incorporated artificial intelligence and other automated and algorithmic technologies into their computer systems. This article provides an overview of the federal regulatory guidance and the state and local rules in place so far and suggests ways in which employers may wish to address these developments with policies and practices to reduce legal risk.

Is Google Search Dead? How AI Is Reshaping Search and SEO Image

This two-part article dives into the massive shifts AI is bringing to Google Search and SEO and why traditional searches are no longer part of the solution for marketers. It’s not theoretical, it’s happening, and firms that adapt will come out ahead.

While Federal Legislation Flounders, State Privacy Laws for Children and Teens Gain Momentum Image

For decades, the Children’s Online Privacy Protection Act has been the only law to expressly address privacy for minors’ information other than student data. In the absence of more robust federal requirements, states are stepping in to regulate not only the processing of all minors’ data, but also online platforms used by teens and children.

Revolutionizing Workplace Design: A Perspective from Gray Reed Image

In an era where the workplace is constantly evolving, law firms face unique challenges and opportunities in facilities management, real estate, and design. Across the industry, firms are reevaluating their office spaces to adapt to hybrid work models, prioritize collaboration, and enhance employee experience. Trends such as flexible seating, technology-driven planning, and the creation of multifunctional spaces are shaping the future of law firm offices.

From DeepSeek to Distillation: Protecting IP In An AI World Image

Protection against unauthorized model distillation is an emerging issue within the longstanding theme of safeguarding intellectual property. This article examines the legal protections available under the current legal framework and explore why patents may serve as a crucial safeguard against unauthorized distillation.