Emory Bankruptcy Developments Journal


Sonal Rastogi


In recent years, the United States has witnessed a surge in bankruptcy filings within the healthcare sector. Inflation, rising expenses, shifts in payment models, labor shortages, legislative uncertainty, and mounting pharmaceutical costs have impacted all healthcare organizations, casting a shadow over communities. This is particularly evident in rural America where hospital closures have shrunk access to healthcare services. This Comment delves into the challenges and interests at play when healthcare entities and nonprofit organizations navigate bankruptcy proceedings, paying particular attention to the challenges faced by health care business bankruptcy proceedings.

This Comment argues that the current bankruptcy framework requires adjustments to meet the pressing needs of contemporary nonprofit health care businesses. This Comment examines the critical role nonprofit healthcare bankruptcies play in safeguarding the health and well-being of communities, and explores the issues that have left debtors, creditors, the public, and courts frustrated.

The bankruptcy system must acknowledge public interests in health care and ensure the provision of essential healthcare services. By advocating for targeted modifications within the bankruptcy framework, this Comment promotes a more equitable and effective resolution for the complex issues surrounding healthcare bankruptcy proceedings.