Medical Record Challenges in Healthcare Bankruptcies and Business Closures

September 12, 2024

In bankruptcy matters involving healthcare providers, the status of patients' medical records - particularly in sales transactions - can have a significant impact on creditor recoveries, including the ability to confirm a reorganization plan or liquidation.

Restructuring, Insolvency and Bankruptcy shareholder, Krystal Mikkilineni, along with her colleague Ronald Winters of Gibbins Advisors cover this impact in a recent American Bankruptcy Institute article, "These records are never platinum: Medical records present challenges in healthcare provider bankruptcy transactions and business closures." The article highlights potential issues and provides tips about medical records during bankruptcy.

From a commercial perspective, medical records create challenges for a successful plan and distribution to creditors. General unsecured creditors might bear the cost of records retention for patient care that occurred and was paid for far before the bankruptcy.

Read the Article

About the American Bankruptcy Institute

Founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues, ABI is the nation's largest and most diverse community of bankruptcy professionals. It is dedicated to research and education on matters related to insolvency and provides essential resources for insolvency professionals that span the entire spectrum of professionals including attorneys, accountants, auctioneers, judges, lenders, academics, turnaround specialists, credit professionals, and many others.

Reprinted with permission from the American Bankruptcy Institute, www.abi.org. Copyright ©2024 all rights reserved.