The Rehabilitation Center of St. Petersburg nursing home in Florida, which filed for bankruptcy earlier this year, can afford to repay all of its debts but still hasn't negotiated a deal with Medicaid regulators who have threatened to stop paying for low-income patients to stay at the facility, Dow Jones Daily Bankruptcy Review reported today. New court papers show that the nursing home expects to fully repay its $1.6 million in unsecured debt and to continue operating under the ownership of Tzvi Bogomilsky, a Miami resident, once the 159-bed nursing facility leaves chapter 11 protection. The nursing home filed for bankruptcy in August to block Medicaid officials from terminating its provider agreement.
