Last year, when I sat down to write the guest editor’s column for the 2020 healthcare issue, we were reeling from a pandemic that not only was straining our already overtaxed healthcare system but also exacerbating the socio-political fissures that have dominated headlines, created misinformation, and prolonged this dystopian nightmare.
Now, a year later, some progress has been made, although it often feels like we take two steps forward and three steps back. We are resilient if nothing else, and one thing we can all agree on is we are weary and want the pandemic to be over so we can resume normalcy. But what does normal look like? One thing is certain—the pandemic will have lasting effects on our healthcare system and the policies that support it.
So, where are we today? This month’s JCR looks at the CARES Act, challenges in the senior housing sector, treatment of healthcare provider agreements in Chapter 11 bankruptcy sales, how MAAP payments are treated in bankruptcy, the role of a receiver in senior living communities, and how nonprofit fiduciary duties impact healthcare restructurings.
Jim Porter and Chuck Salvo, managing directors of ToneyKorf Partners, question whether the CARES Act is a blessing or a curse, and discuss how providers should look forward and not back as they adjust to the new normal. The article offers tangible strategies for providers to consider.
Next, we have an in-depth look at senior housing by Matt Caine, managing director or Solic Capital Partners. Matt looks back at 2020, deciphers the challenges, looks at industry headwinds, and examines current trends. The reader will come away with a better understanding of the issues and how success and stabilization can be found.
Cameron Fine, Rachel Nanes, and Rachel Albanese of DLA Piper, and Randy Peak of Haynes and Boone, give us a detailed look at how the treatment of healthcare company providers agreements is key in a Chapter 11 bankruptcy sale. They offer a road map of where we’ve come from to where we are going within the context of the pandemic.
How MAAP payments should be treated in bankruptcy is up next, as Susan Golden of Kirkland and Ellis, Chris Creger of Cohn Reznick, and Travis Vandell of Stretto examine this critical financial relief program. The authors take us through the key considerations of MAAP as guided by the Centers for Medicare and Medicaid Services.
Next, we look at the role of a receiver in senior living communities as examined by Tal Gurevich, Jessica Scouten and Zachary A. Rowe of Healthcare Management Partners. The authors discuss the benefits of receiverships, from lower cost to still allowing for crucial reporting and oversight to take place without a bankruptcy filing.
Lastly, Louis E. Robichaux IV and Patrick D. Pilch of Ankura discuss how nonprofit fiduciary duties impact healthcare restructurings. The article focuses on nonprofit healthcare organizations, such as hospitals, skilled nursing facilities, and outpatient services organizations that provide medical, behavioral health, and dental services, and the impact of COVID-19 and other financial challenges for board members to consider.