Healthcare Restructuring

Healthcare organizations don’t fail because they provide bad care, they fail because the system around them is constantly shifting. Reimbursement models change, regulations multiply, and new technologies and delivery models disrupt operations and finances. Hospitals, physician groups, clinics, senior living facilities, and home health providers all face these pressures every day.

We help organizations navigate that complexity. When operations are strained, finances are uncertain, or compliance risks loom, we work alongside leadership to identify practical paths forward. That can mean restructuring debt, refining operations, renegotiating contracts, or supporting strategic transactions. The solutions we propose are tailored to your organization’s goals, constraints, and mission.

No two situations are the same. Some hospitals aim to grow, others consider mergers. Physician groups weigh employment versus independence. Some organizations are wrestling with outdated systems or reimbursement uncertainty. Others are confronting compliance challenges or operational inefficiencies. Our job is to help you see the problem clearly, consider the options, and implement solutions that work.

How We Work

Our team combines healthcare law, restructuring, finance, real estate, litigation, and regulatory knowledge. We focus on the practical: stabilizing operations, protecting value, and ensuring organizations can continue to serve their communities. Compliance is embedded in everything we do—half of the organizations we encounter face serious challenges due to regulatory missteps. Addressing those issues is a critical step in any turnaround.

Representative Matters

The following matters illustrate the range of healthcare restructuring, advisory, and insolvency work handled by Dickinson Wright attorneys.

Hospitals, Physician Groups, and Clinics

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

Creditors and 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 cases involving a 200-bed nonprofit community hospital, a multi-facility radiology practice, and multiple sleep diagnostic centers, negotiating asset sales, reorganizations, and business wind-downs.
• Advised an international provider of electronic health record and cloud-based services to skilled nursing facilities in restructuring and operational matters.

Lenders and Lessors

• Represented senior noteholders in the Chapter 11 case of a multi-million-dollar healthcare company with more than 30 affiliates.
• 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, and 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 significantly increased valuation.