Health care businesses, particularly health care facilities and physician practice groups, currently face significant challenges as the industry continues its transition from traditional fee-for-service models that compensate providers for procedures performed toward so-called “value-based” models that compensate based on the results of services. In addition, these businesses must comply with laws such as the Patient Protection and Affordable Care Act, which requires additional reporting and costly business improvements while simultaneously reducing government reimbursement for certain programs. This confluence of new regulations and lower reimbursement rates is causing distress for many providers who often do not have sufficient capital to comply. Exacerbating this stress is uncertainty over whether the existing regulations will remain in effect or be replaced. Thus, many of these providers are either partnering or merging with other providers to achieve economies of scale, resulting in an unprecedented level of consolidation within the industry. In this article, partner Adam Harris and special counsel James Bentley discuss how bankruptcy can maximize healthcare businesses' value.