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Financial and Legal Options For Economically Distressed Rural Hospitals

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by Mark H. Zafrin, Michael Hatchett and Ron Lebow
Becker's Hospital Review
August 30, 2016

Mark H. Zafrin, Michael Hatchett and Rob Lebow's article, "Financial and Legal Options For Economically Distressed Rural Hospitals," was published in Becker's Hospital Review on August 30, 2016.

From the article...

"Today’s regulatory environment poses risks and challenges to hospitals and the physicians who serve them. Many hospitals throughout the country are struggling financially due to a confluence of several factors, including, most notably: a new reimbursement structure which rewards a decrease in hospital utilization and penalizes re-admission; the usage of bundled or capitated rates; and the shift toward community and clinic-based chronic care management. Naturally, for any hospital, maintaining relationships with physicians is essential to preserving a hospital’s viability. Likewise, physician groups have an incentive to support the continued sustainability of their local facility. These two salient facts provide a basis for a new economic model for how hospitals can deliver effective and cost efficient medical services. Legal challenges exist, but the obstacles are surmountable with deft legal structuring."

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