Senior Living Major Portion of 4Q Healthcare Bankruptcies: Report



(courtneyk/Getty Images)

Senior-focused organizations, independent/assisted living communities, and skilled nursing facilities accounted for a significant share of healthcare bankruptcy filings in Q4 2021, according to a new report.

The Polsinelli-TrBK Distress Indices report, published by law firm Polsinelli, noted that as the health sector begins a return to pre-pandemic normality, communities and organizations of older people face a census, increased operating costs and significant staffing pressures. and labor costs.

“We expect the number of bankruptcy filings to continue to rise, particularly in the healthcare and real estate sectors, as we enter 2022,” said Polsinelli shareholder Jeremy Johnson, a lawyer specializing in litigation. bankruptcies and restructuring and co-author of the recently released report. “We have not yet seen the end of COVID-19, and the massive federal assistance that has kept the facilities afloat will soon end.”

The quarterly Polsinelli-TrBK Distress Indices report tracks the increase or decrease in all Chapter 11 filings with over $1 million in assets since the fourth quarter of 2010. It includes public and private companies, providing Distress breakdowns specifically in the real estate and healthcare services sectors.

The Healthcare Services Distress Search Index was 196.67 in the fourth quarter of 2021, an increase of 108 points from the third quarter and the second consecutive increase in healthcare filings .

After two relatively slow quarters, the number of healthcare filings appears to be picking up, with the highest number of filings since the second quarter of 2020.

For Q4 health care filings, Delaware tops the list in Q4 with 55.1% of health care filings among eight regions, with the Southeast region following at 25.42%.

Looking at overall bankruptcy filings, the Chapter 11 Distress Search Index for the fourth quarter of 2021 was 39.60, reflecting a nine point decline from the third quarter. Compared to the same period a year ago, the index fell by more than 47 points.

The Southeast region reported 43.32% of all Chapter 11 bankruptcy filings, with Delaware coming in second at 22.47% of bankruptcy filings. Both are the busiest places for bankruptcy in eight regions.

To access the full report, go to Polsinelli-TrBK Distress Index Website.



Source link

Previous Texas bankruptcy lawsuit begins with energy bill over $2 billion after 2021 winter storm
Next Is it too late to save more restaurants from bankruptcy?