Sheppard’s Restructure THIS! podcast explores the latest trends and controversies in Chapter 11 bankruptcy, commercial insolvency and distressed investing. In this episode, Sam Maizel, partner and chair of Dentons’ Distressed Healthcare group, joins host Justin Bernbrock to discuss why healthcare bankruptcies are unlike any other Chapter 11 case, from Medicare/Medicaid provider agreement disputes to the wave of hospital and skilled nursing facility closures reshaping communities nationwide.
What we discuss in this episode:
- Sam’s transition from infantry officer to the DOJ, then to private practice
- What makes healthcare restructurings different from a typical corporate Chapter 11
- Why hospital closings devastate communities in ways other business failures don’t
- The government’s inconsistent position on Medicare/Medicaid provider agreements
- Why cutting off successor liability matters so much to buyers of distressed hospitals, and how that shapes deal value
- How Sam’s win in In re Verity Health Systems of California used the pre-existing duty rule to reshape how courts treat these agreements, and how the government has since backed off similar fights
- How the treatment of provider agreements impacts the ability to sell a hospital or healthcare facility, particularly in safety net and rural contexts
- The wave of hospital and health system bankruptcies over the last three years and the role private equity has played
- Why skilled nursing and long-term care facilities are the “canary in the coal mine” for financial distress in healthcare
- The looming impact of Medicaid cuts, provider-directed payments (“bed tax”) crackdowns and immigration restrictions on the healthcare workforce
- The outlook for healthcare restructuring activity over the next five to ten years
About Samuel Maizel
Sam Maizel is a partner in Dentons’ Los Angeles office, where he leads the firm’s healthcare industry restructuring efforts nationwide. His practice spans in- and out-of-court restructurings across a broad spectrum of industries, and he is a nationally recognized expert in the unique issues that arise when healthcare entities face financial distress.
Sam’s Chapter 11 work has included serving as lead counsel to debtors, trustees, and creditors’ committees, and representing buyers and sellers of assets. He’s also represented local hospital districts and other governmental units as both debtor’s counsel and counsel to creditors’ committees in Chapter 9 bankruptcy proceedings.
Prior to entering private practice, Sam was a trial attorney in the U.S. Department of Justice’s Commercial Litigation Branch, representing the federal government in bankruptcy, district and appellate courts nationwide. He also served in the U.S. Army Judge Advocate General’s Corps, including during Operation Desert Shield/Desert Storm, for which he was awarded the Bronze Star Medal. Before becoming an attorney, he was an infantry officer in the 101st Airborne Division and the 3rd U.S. Infantry Regiment (The Old Guard).
About Justin Bernbrock
Justin Bernbrock is a partner in the Finance and Bankruptcy practice group in Sheppard’s Chicago office, where he focuses on all aspects of corporate restructuring, bankruptcy and financial distress. He represents clients across a wide range of matters, including debtor and creditor representations. He has substantial experience in out-of-court and in-court restructurings, primarily in the Southern District of New York, Eastern District of Virginia, District of Delaware and Southern District of Texas.
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This podcast is for informational and educational purposes only. It is not to be construed as legal advice specific to your circumstances. If you need help with any legal matter, be sure to consult with an attorney regarding your specific needs.