Hospital bankruptcy wave looms as virus surges

A surge of hospital bankruptcies looms as federal aid that gave a lifeline to healthcare providers dries up, according to Bloomberg Law. 

Four things to know: 

1. At least three dozen hospitals have filed for bankruptcy protection this year, according to data compiled by Bloomberg

2. Grants made available under the Coronavirus Aid, Relief and Economic Security Act and advance Medicare payments helped prevent an anticipated increase in Chapter 11 filings by hospitals earlier this year, according to the report. 

3. Stimulus funds helped struggling healthcare providers stay afloat, but "the pre-pandemic stresses come back" when that money starts to slow down, Andrew Sherman, bankruptcy practice co-chair at Sills Cummis & Gross, told Bloomberg

4. Many hospitals in financial distress before the pandemic were able to avoid bankruptcy due to federal grants and loans. However, Congress and the White House haven't agreed to further COVID-19 aid, and cases are rising in many states. As a result, hospitals are losing revenue and facing higher expenses tied to the pandemic without any additional aid. 

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