Ryan K. Cochran, Member of the Firm in the Health Care & Life Sciences practice, in the firm’s Nashville office, co-authored an article in AHLA’s Business Law and Governance Practice Group, titled “Why You Should Learn the Playbook: Sampling of Market Terms and Timelines in Court-Approved Asset Sales.” (Read the full version – subscription required.)
This Briefing is part two of a three-part series on distressed health care sales. Part one provides a market snapshot and an overview of distressed sales. Part two discusses and report on market terms for commonly negotiated business terms in distressed sales. Part three will discuss seller and purchaser considerations in negotiating sale terms for a court-approved stalking horse auction process.
To understand the application of the market terms, a sampling of health care bankruptcy and receivership proceedings was gathered. The sampled proceedings:
- included 32 bankruptcy cases and 20 receivership cases;
- were pending in bankruptcy courts, U.S. district courts, and state courts;
- were pending in Alabama, Arizona, California, Delaware, Georgia, Iowa, Michigan, New Hampshire, New Jersey, New York, Tennessee, Texas, and Virginia; and
- included sales of assisted living facilities, home health agencies, hospitals, rehabilitation centers, skilled nursing homes, and urgent care facilities.
The charts also show a comparison between bankruptcy and receivership proceedings.
