As we’ve discussed before, healthcare facility closures occur on a regular basis. Sinc the beginning of 2020, five different provider groups and one manufacturer have filed for bankruptcy. Since the industry is so tenuous, it’s important that CFOs and other hospital managers take the steps needed to ensure that each company’s cashflow remains positive, even if that means filing Federal ERISA appeals. Let’s go over some of the latest filings to emphasize just how crucial this is.
Six Facilities File for Bankruptcy Before Closing Their Doors
According to sources, “Miami-based Hygea Holdings, which owns physician practices, pharmacies and diagnostic facilities, filed for Chapter 11 bankruptcy Feb. 19. Hygea and 32 affiliates entered bankruptcy with roughly $200 million in debt. Overland Park, Kan.-based Pinnacle Healthcare System and its hospitals in Missouri and Kansas filed for Chapter 11 bankruptcy protection on Feb. 12. Pinnacle Regional Hospital in Overland Park, formerly known as Blue Valley Hospital, entered bankruptcy with assets totaling between $10 million and $50 million and liabilities within the same range. Pinnacle Regional Hospital in Booneville, Mo., formerly known as Cooper County Memorial Hospital, also entered bankruptcy Feb. 12 after abruptly shutting down in January.”
“Valeritas Holdings, a New Jersey-based company that makes insulin pumps, filed for Chapter 11 bankruptcy in February. Zealand Pharma, a Denmark-based drugmaker, will acquire substantially all of Valeritas’ assets for $23 million. Thomas Health, a two-hospital system based in South Charleston, W.Va., filed for Chapter 11 bankruptcy protection on Jan. 10. Officials said the bankruptcy process will help Thomas Health address its long-term debt and pursue strategic opportunities.”
“Reva Medical, a San Diego-based devicemaker that specializes in vascular devices, filed for Chapter 11 bankruptcy in January. Reva plans to continue ordinary operations while going through the bankruptcy process. KRS Global Biotechnology, a Boca Raton, Fla.-based drug compounding facility, filed for Chapter 11 bankruptcy in January. In its bankruptcy filing, the drugmaker claimed less than $50,000 in assets and up to $50 million in liabilities.”
What Can You Do To Prevent Financial Difficulties?
Although your facility’s aged claims may make up only a small portion of your overall revenue, every penny counts, especially when you are in dire financial straits. Your best option is to file Federal ERISA appeals on those aged claims in order to collect on them. According to the law, those commercial health insurance companies must pay your claims, even those that have gone through the three state-level appeals. Since your billing department employees don’t have the time or knowledge (ERISA isn’t even taught as a part of law school curriculums) to file those appeals, you need to reach out to us. We have a strong and reliable track record of collecting Federal ERISA claims. Contact us today.