McDonald Hopkins Healthcare Restructuring Alert: Critical Times for Critical Access Hospitals

CLEVELAND, Nov. 9, 2010 /PRNewswire/ -- The apparent hiccup in the American economy's recovery, coupled with the uncertainties arising from healthcare reform, place even greater stress on all hospitals. Additionally, reimbursement-related factors also have the potential to increase financial distress, including significant recoupment findings under RAC and other new or enhanced governmental audit processes, increases in uninsured and underinsured populations, and CMS policy changes effecting cost reimbursement.  Finally, other economic factors may worsen the financial distress, including increased competition, declining patient populations, the loss of key physicians, and lower community and state support.  Critical access facilities, with their rural locations, small markets and limited size, confront that stress with fewer resources and tools and with less margin for error.

Managers of these facilities must be able to identify—early and quickly—the problems facing their institutions. They must likewise react swiftly to problems with the necessary corrective steps.  Placing expansion, renovation or other capital investment plans on hold, cutting staffing levels, or implementing operational cost savings can address these challenges only to a point. Other options exist that should be reviewed, which if properly employed, may help shore up the hospital's financial health and permit it to weather some of the financial problems that are outside the hospital's direct control.

Click below to read more of the McDonald Hopkins Healthcare Restructuring Alert:

McDonald Hopkins Law Firm Alert: Critical Times for Critical Access Hospitals

http://www.mcdonaldhopkins.com/alerts/alert.aspx?id=10D9O55lEUusyf3G172v6Q

About McDonald Hopkins

With more than 130 attorneys in Chicago, Cleveland, Columbus, Detroit, and West Palm Beach, McDonald Hopkins is a business advisory and advocacy law firm focused on business law, litigation, business restructuring, labor and employment, government affairs, healthcare, and estate planning. The president of McDonald Hopkins is Carl J. Grassi. For more information about McDonald Hopkins, visit http://www.mcdonaldhopkins.com.

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SOURCE McDonald Hopkins LLC

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