Healthcare includes a broad range of business types, such as pharmaceutical, manufacture and supply of medical equipment,health care science, technology and transportation amongst others, in addition to those typically supplying a range of treatments and patient care such as dental, domiciliary care and residential care in care homes.
The sector has experienced some of its most difficult challenges over the last two years as a result of the pandemic from infection control and isolation requirements, obtaining sufficient level of PPE supplies to loss of occupancy levels.
In addition, Brexit has impacted the sector resulting in labour shortages and an increase in labour costs to attract new employees.
There are further challenges ahead with spiralling costs in respect of the increase in Minimum Wage and National Living Wage from April 22 and the spiralling costs of energy at a time when many care homes are still rebuilding occupancy levels back to pre covid levels.
Our team has a vast amount of experience in advising both regulated and non-regulated businesses within the healthcare sector; working with owners and funders alike in order to try to avoid insolvency.
We have advised many of the above business types, which cross over with other sectors, however we have a particular specialism in advising those businesses regulated with the Care Quality Commission (“CQC”), typically domiciliary care and care/nursing homes.
We provide management teams and funders with advice on the respective options available to a business and/or its funders in a distressed situation, whether that may be refinancing, entering into informal time to pay arrangements, restructuring of current financing and any relevant insolvency procedures so that owners and funders can make informed decisions in relation to the future of the business.
In the event that insolvency cannot be avoided, we have experience of trading businesses within the care sector with a view to achieving a going concern sale of the business thus avoiding closure, potentially providing an enhanced return to its stakeholders (than that achievable in a closure) and importantly providing continued and uninterrupted care to its service users.
We also have experience of advising and implementing orderly wind downs and closures including liaising with Local Authorities and CQC in respect of the transfer of the service user to new providers.
In our role as office holder we have overseen the sale of the business/property which includes the marketing process, registration process with CQC and completion of sale contracts.