Public Hospital Bankruptcies and an Evolving Functional Interpretation of the Bankruptcy Code

Bankruptcy Law Letter, Vol. 39, Issue 8 (2019)

20 Pages Posted: 12 Mar 2021

See all articles by Diane Lourdes Dick

Diane Lourdes Dick

The University of Iowa College of Law

Date Written: August 1, 2019

Abstract

Analyzing recent hospital chapter 9 bankruptcy cases from all over the country, I argue that courts and parties appear to be using a “functional” interpretation of chapter 9 of the U.S. Bankruptcy Code to meet the unique restructuring needs of these debtors and their stakeholders. The result is a chapter 9 regime that looks increasingly like chapter 11. While this evolution in the law underscores the Code’s inherent flexibility and efficiency, it also threatens to dilute essential constitutional safeguards that are deeply embedded in chapter 9. I argue that courts should resist the functional interpretation, and that Congress should amend the Code to provide much-needed clarity.

Keywords: public hospitals, bankruptcy, municipal bankruptcy, chapter 9, hospital restructuring

Suggested Citation

Dick, Diane Lourdes, Public Hospital Bankruptcies and an Evolving Functional Interpretation of the Bankruptcy Code (August 1, 2019). Bankruptcy Law Letter, Vol. 39, Issue 8 (2019), Available at SSRN: https://ssrn.com/abstract=3750845

Diane Lourdes Dick (Contact Author)

The University of Iowa College of Law ( email )

Melrose and Byington
Iowa City, IA 52242
United States
52242 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
40
Abstract Views
113
PlumX Metrics