Federal health regulators who moved to cut off Medicaid payments to a Georgia nursing home after finding broken toilets during a January inspection have been stymied by the nursing home's bankruptcy, which put the dispute in front of a judge, Dow Jones Daily Bankruptcy Review reported today. In court papers, Department of Health and Human Services officials told Judge Nicholas W. Whittenburg that the agency has the power to end the provider agreement with Jeffersonville Healthcare & Rehab LLC despite the legal protections the 120-worker facility got after filing Jan. 22 for chapter 11 protection. Officials threatened to cut off that agreement after they found the facility's plumbing system had broken down, flooding patient rooms.
