Healthcare Restructuring

Healthcare organizations operate in an environment of constant change. Reimbursement models evolve, regulations become more complex, and new technologies and care delivery models reshape operations and financial performance. Hospitals, physician groups, clinics, senior living facilities, and home health providers all face these challenges while continuing to deliver quality patient care.

We help organizations navigate that complexity. Whether operations are under pressure, financial performance is uncertain, or regulatory risks are increasing, we work alongside leadership to identify practical paths forward. That may include restructuring debt, improving operations, renegotiating contracts, supporting strategic transactions, or addressing compliance concerns. Every solution is tailored to the organization’s goals, financial realities, and mission.

No two situations are alike. Some organizations are pursuing growth or evaluating mergers, while others are balancing physician employment models, managing reimbursement uncertainty, modernizing operations, or addressing compliance issues. Our role is to help clients evaluate their options, make informed decisions, and implement practical solutions.

How We Work

Our multidisciplinary team brings together experience in healthcare law, restructuring, finance, real estate, litigation, and regulatory compliance. We focus on stabilizing operations, preserving value, and helping healthcare organizations continue serving their communities. Because regulatory compliance is often central to a successful turnaround, we work closely with clients to identify and resolve compliance issues before they become larger operational or financial challenges.

Representative Matters

The following matters highlight the breadth of Dickinson Wright’s healthcare restructuring, advisory, and insolvency experience.

Hospitals, Physician Groups & Clinics

• Represented a 33-bed surgical hospital in Chapter 11, negotiating its sale to a subsidiary of a publicly traded healthcare company, resulting in full payment to creditors and a recovery for equity holders.
• Advised a regional specialty clinic on its closure, liquidation, and dissolution under state law.
• Represented a Michigan regional hospital in restructuring and workout negotiations, including evaluating a potential Chapter 11 filing and a proposed Section 363 asset sale.

Creditors & Committees

• Served as counsel to a creditors’ committee in the Chapter 11 merger of two hospitals, resulting in a 96% recovery for creditors. The transaction was recognized by the Turnaround Management Association as Mid-Sized Company Turnaround of the Year and by M&A Advisor as Healthcare/Life Sciences Deal of the Year.
• Represented creditors’ committees in Chapter 11 proceedings involving a 200-bed nonprofit community hospital, a multi-facility radiology practice, and multiple sleep diagnostic centers, negotiating asset sales, reorganizations, and orderly wind-downs.
• Advised an international provider of electronic health record and cloud-based services to skilled nursing facilities on restructuring and operational matters.

Lenders & Lessors

• Represented senior noteholders in the Chapter 11 case of a healthcare company with more than 30 affiliated entities.
• Served as counsel to a secured lender in a large Texas hospital bankruptcy, obtaining stay relief to collect healthcare receivables, preserving first-lien positions on hospital equipment, and facilitating asset sales.
• Represented a national medical equipment lessor in a regional hospital bankruptcy.

Business, Financial & Operational Restructuring

• Advised a national health and wellness company on financial and operational restructuring, restoring profitability and stabilizing growth.
• Represented a national electronic health records company in restructuring its product platform, service delivery model, and key contracts, including state Medicaid agreements, positioning the company for sale at a substantially increased valuation.
• Led the legal and business restructuring of a rural hospital following ownership misconduct, including acquisition, refinancing, operational redesign, compliance remediation, and negotiation of a joint operating agreement that enabled the facility to remain open and continue serving its community.
• Served as chief restructuring officer for a multi-state skilled nursing facility operator, revising payer agreements, billing, and collections processes to avoid insolvency proceedings.
• Advised a managed care organization on the distribution of approximately $450 million in supplemental Medicaid funding across nearly 100 hospitals.

Transactions & Acquisitions

• Represented buyers in multiple acquisitions of distressed healthcare assets, including hospitals, skilled nursing facilities, and ambulatory surgery centers.
• Represented a prospective purchaser in a Section 363 asset sale involving a rural healthcare system in North Carolina.
• Advised the acquirer of a skilled nursing facility and an ambulatory surgery center acquired during lender litigation.

Regulatory Matters & Investigations

• Represented healthcare providers and related parties in Bankruptcy Code litigation and regulatory investigations arising from insolvency, including matters involving the False Claims Act and Stark Law before the U.S. Department of Justice, state attorneys general, and health insurers.