Report: Health care distress jumps to highest level since 2009
Sector 'is decoupling from the rest of the economy'
Health care bankruptcies are on the rise, according to a new measure compiled by Frost Brown Todd subsidiary FBT Financial Indices.
The number of U.S. health care companies in financial distress in the third quarter was up 38 percent from the fourth quarter of 2010, according to the report. Bankruptcy filings in the sector haven't been this high since the third quarter of 2009 — just after the official end of the Great Recession.
Created by Frost Brown Todd attorneys Bobby Guy and Robert Dempsey, the financial distress indices for health care services, general economy and real estate debuted in September. The health care services sector refers specifically to provider-based companies — such as hospitals, surgery centers and senior care — with assets of at least $1 million.
"We're putting together proprietary information on the markets in which we're working, and it's valuable for us to understand it, and for clients in being able to plan and find deal opportunities," Guy said.
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