New Financial Pressures on Senior and Continuing Care Health Facilities

Bloomberg Law recently examined new financial pressures on senior and continuing care health facilities following passage of the “One Big Beautiful Bill Act” (OBBBA) in an article that quotes LP Partner Ryan Hardy.

Topics highlighted in this article include:

• What facilities can expect following the nearly $1 trillion in funding cuts to Medicaid included in the OBBBA
• How reimbursement and eligibility adjustments may impact senior care facilities
• How tariffs may apply additional financial pressures by affecting medical equipment costs
• The impact of immigration reforms on staffing and ongoing labor shortages
• The likely increase in bankruptcies and rise in mergers and acquisitions of troubled skilled nursing facilities

Ryan Hardy’s Perspective

While many aspects of the OBBBA will create challenging conditions for senior care, some rural providers may receive support and incentive investments under the new law. Ryan predicts increased merger activity involving distressed facilities: “I expect to see a wave of case filings that are prompted to cleanse of liabilities and allow for a free and clear asset sale to some larger acquirer.”

Click here to read the full article. Facing questions about how OBBBA may impact the senior care industry? Contact Ryan Hardy or another member of the Financial Services & Restructuring Group.