Nearly every assisted living and nursing facility in the country depends heavily upon its Medicare and Medicaid provider agreements to fund the cost of caring for their residents, and termination by the government of either or both typically results in closure or sale of the affected facility, according to an analysis in today’s Legal Intelligencer. In a recent Florida bankruptcy case — In re Bayou Shores SNF, 2014 Bankr. LEXIS 5200 (M.D. Fla., Dec. 31, 2014) — however, one operator successfully fought back and in the process may have created a pathway for others to maintain access to the Medicare and Medicaid systems over the government's objection. In Bayou Shores, the debtor, which derived substantially all of its revenue from Medicare and Medicaid, filed a chapter 11 petition in an effort to stay termination of its provider agreements. The debtor was not only successful in enjoining the termination, but subsequently confirmed a chapter 11 plan that included assumption of the provider agreements over the objection of both the federal and state governments. Read more.
http://www.thelegalintelligencer.com/id=1202715290025/Chapter-11-Plan-A…
For further analysis, be sure to pick up a copy of the ABI Health Care Insolvency Manual, Third Edition, in the ABI Bookstore.
http://bookstore.abi.org/abi-health-care-insolvency-manual-third-edition