Healthcare (Short Predictions, Long Distress)

"What comes next?" we asked back in June. Looks like a lot of professionals are becoming increasingly convinced that '18 will be rife with healthcare activity as distress rises to "epidemic" levels. Hmmm. Okay. We'll see. Distress watchlists in the space DO seem to be expanding with names like HCR Manorcare, Genesis Healthcare Corporation ($GEN), Prime Healthcare Services Inc., Signature Healthcare LLC, and Community Health Systems ($CYH), among many others. Meanwhile, to the degree that healthcare providers are suffering from regulatory and other headwinds, management may want to move data security up higher on their list of priorities. After all, 21st Century Oncology Holdings and Morehead Memorial Hospital both serve as examples of what can happen when precautions aren't implemented early. One last note on healthcare distress, looks like biglaw attorneys aren't immune to increased healthcare spending. According to Abovethelaw.com, certain biglaw shops aresurreptitiously passing the cost of rising healthcare coverage costs to their associates. Living the dream.

Healthcare Distress Heats Up $QHC

Like a deluge, the (albeit small) healthcare bankruptcy filings seem to be pouring in after we clowned on the industry's charged focus on healthcare. Morehead Memorial in Eden North Carolina is the latest victim. It was operated by Quorum Health Resources ($QHC). Nice zinger by the company spokeswoman against QHC, which has been replaced as operator: "The board's goal has been to find a partner that shares Morehead's dedication to quality care and patient safety...." That can't help QHC's business development efforts.