Hospitals bankruptcy wave looms as virus surges

Four things to know:.

A surge of health center insolvencies looms as federal aid that offered a lifeline to healthcare suppliers dries up, according to Bloomberg Law..

1. A minimum of 3 lots health centers have applied for insolvency security this year, according to data compiled by Bloomberg..

2. Grants provided under the Coronavirus Aid, Relief and Economic Security Act and advance Medicare payments helped prevent an anticipated boost in Chapter 11 filings by health centers earlier this year, according to the report..

3. Stimulus funds assisted having a hard time health care service providers stay afloat, but “the pre-pandemic tensions return” when that money begins to decrease, Andrew Sherman, insolvency practice co-chair at Sills Cummis & & Gross, informed Bloomberg..

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Many medical facilities in monetary distress prior to the pandemic were able to prevent insolvency due to federal grants and loans. Congress and the White House have not agreed to further COVID-19 aid, and cases are increasing in numerous states.

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Lots of health centers in monetary distress prior to the pandemic were able to prevent bankruptcy due to federal grants and loans. Congress and the White House havent agreed to more COVID-19 help, and cases are increasing in lots of states. © Copyright ASC COMMUNICATIONS 2020.