NEW YORK, Feb. 21 28, 2022 (GLOBE NEWSWIRE) — A flurry of senior healthcare facility bankruptcy filings shaped the United States’ economic distress in the fourth quarter of 2021, which is detailed in the latest Polsinelli-TrBK Reportage distress indices.
The report, released today by law firm Am Law 100 Polsinelli, details how organizations focused on senior living, independent/assisted living communities and skilled nursing facilities account for a significant portion of bankruptcy filings in the health sector as health care begins its return to pre-pandemic numbers. . These healthcare institutions are facing a decrease in the number of patients, an increase in operating costs and significant pressure on personnel and labor costs.
“We expect the number of bankruptcy filings to continue to rise, particularly in the healthcare and real estate sectors, as we enter 2022. We have yet to see the end of COVID-19 and the massive federal aid that kept the facilities afloat will end soon,” said Jeremy Johnson, Polsinelli shareholder, bankruptcy and restructuring attorney and co-author of the report.
The Polsinelli-TrBK Distress Indices are the backbone of a quarterly research report series that uses Chapter 11 filing data – bankruptcies with more than $1 million in assets – as an indicator to measure the financial distress throughout the US economy and distress outages specifically in the real estate and healthcare sectors. It is the only current metric that tracks both Main Street and Wall Street statistics.
Other important report updates include:
- The Chapter 11 Distress Search Index was 39.60 for the fourth quarter of 2021. The Chapter 11 Index is down nine points since last quarter. Compared to the same period a year ago, the index is down more than 47 points and compared to the reference period of the fourth quarter of 2010, it is down more than 60%. This is the third consecutive quarter that the Chapter 11 Distress Search Index has recorded a decline.
- The Housing Distress Search Index was 20.17 for the fourth quarter of 2021. The housing index is down more than one point since last quarter. Compared to the same period a year ago, the index has lost eight points and compared to the reference period of the fourth quarter of 2010, it is down 80%.
- The Health Care Services Distress Search Index was 196.67 for the fourth quarter of 2021. The Health Care Index is up 108 points since last quarter. Compared to the same period a year ago, the index has fallen by more than 220 points and compared to the reference period of the fourth quarter of 2010, it is up by 96%.
The Polsinelli-TrBK Distress Indices track the increase or decrease in all Chapter 11 filings with over $1 million in assets since the fourth quarter of 2010. Unlike the public markets, the Polsinelli-TrBK Distress Indices TrBK includes both public and private companies, creating a broader economic view that can show trends developing on Main Street before they appear on Wall Street.
To access the full report, charts and all past analysis, visit www.distressindex.com.
Polsinelli is an Am Law 100 firm with 950 attorneys in 21 offices across the country. Recognized by legal research firm BTI Consulting as one of the best firms for excellent client service and client relations, the firm’s lawyers provide value through practical legal advice infused with business knowledge and focus on healthcare, financial services, real estate, intellectual property, corporate litigation, labor and employment and middle market business. Polsinelli PC, Polsinelli LLP in California.
Distress Index Report Q4 Report