The Sale of Nonprofit Hospitals Through Bankruptcy: What BAPCPA Wrought

From the ABI Column, “Intensive Care”

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”) imposed significant hurdles on a nonprofit entity seeking to sell its assets through bankruptcy to a for-profit entity. This column considers sales of nonprofit asset hospitals before and after BAPCPA and concludes that the amendments were in many ways consistent with the rulings of courts nationwide at the time the changes made by BAPCPA were first considered.

Reprinted with permission from the ABI Journal.