"Fiduciary Standards for Board Members of Financially Distressed Hospitals"

August 9, 2016

News

Increasingly, hospitals are facing material financial challenges which, for some hospitals, create a financial distress scenario that requires prompt and decisive action to remain viable. Hospital boards of directors/trustees need to be particularly sensitive to their fiduciary duties and obligations in such situations. What follows below is a primer on the early warning signs of financial distress and board and hospital responsibilities which apply.

Click here for Rick Cooper's full article from Ohio Healthcare News.

Skilled nursing facilities will soon be required to significantly expand their reporting of ownership and control information on newly updated CMS-855A forms. Private equity companies and other organizations like real estate investment trusts have been named as one of the reasons that the expanded reporting for SNFs has been implemented. As such, these organizations should be aware that they may be a part of this reporting through a number of routes.

Over the past 24 months, the U.S. Department of Health and Human Services Office for Civil Rights has brought notable enforcement efforts against several non-profit covered entities and business associates, resulting in instances of six and seven-figure penalties against providers across the county for incidents involving breaches of protected health information.

A new amendment to New York state law, which would have required all healthcare providers to obtain separate consents from patients for treatment and payment is on hold until further guidance is released, according to the New York Department of Health.

"Fiduciary Standards for Board Members of Financially Distressed Hospitals"

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