McKnight’s Senior Living
Senior living-focused organizations, independent / assisted living communities and skilled nursing facilities made up a significant portion of healthcare bankruptcy filings in the fourth quarter of 2021, according to a new report.
The Polsinelli-TrBK Distress Indices report, released by the Polsinelli law firm, noted that as the healthcare sector begins a return to pre-pandemic normalcy, senior living communities and organizations are dealing with decreased census, increasing operating costs, and significant pressures on staffing and labor costs.
“We anticipate that the bankruptcy filing numbers will continue to increase, especially in the healthcare and real estate industries, as we enter 2022,” said Polsinelli Shareholder Jeremy Johnson, a bankruptcy and restructuring attorney and co-author of the recently released report. “We haven’t seen the end of COVID-19 yet, and the massive federal assistance that has kept facilities afloat will end soon.”