A record number of health care companies filed for Chapter 11 bankruptcy in the fourth quarter of 2017, according to Kansas City, Missouri-based Polsinelli.
The firm’s Health Care Services Distress Research Index reflects Chapter 11 filings among health care organizations, such as senior care communities, hospice agencies and hospitals, that have assets of more than $1 million. The index is based on independent data collected by the TrollerBK.com bankruptcy service, and given exclusively to Polsinelli.
Polsinelli does not reveal the number of senior care organizations included in the index.
Specifically, the Health Care Services Distress Research Index totaled 281.67 for the fourth quarter of 2017, marking an increase of 58 points or 26% from the third quarter of 2017, and an increase of more than 131 points or 88% from the fourth quarter of 2016.
“The Health Care Services Distress Index keeps breaking its previous record high,” Polsinelli said in a Tuesday statement announcing the new figures.
The majority of health care services Chapter 11 filings in the fourth quarter of 2017—59.17%—occurred in the Southeast U.S. Approximately 21.3% occurred in the Southern District of New York.
Additionally, the index is still showing signs of decoupling from the greater U.S. economy, which is gaining strength due to a “booming stock market” and a low interest rate environment, Polsinelli noted.
Written by Mary Kate Nelson