Healthcare bankruptcies see 'unprecedented drop'

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Despite a tumultuous year with the COVID-19 pandemic, there has been an "unprecedented drop" in Chapter 11 bankruptcy filings in the healthcare industry, according to Polsinelli, an Am Law 100 firm.

The law firm's Polsinelli-TrBK Distress Indices Report revealed that the second quarter of 2020 had the lowest recorded distress index in the healthcare industry since 2010.

"We’re seeing a truly remarkable change in the healthcare industry right now. This is the lowest rate of healthcare bankruptcy filings the Index has ever seen, and we’re seeing clear reasons for that," said Polsinelli Shareholder Jeremy Johnson, a bankruptcy and restructuring attorney and co-author of the report. 

The law firm said the drop in bankruptcies for the typically distressed industry is due to the substantial and continued government support amid the pandemic. 

In particular, Congress allocated $178 billion to providers to help them offset revenue losses amid the pandemic. 

Read more here.  

 

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