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“Nursing facility takes a creative path to skirt Medicare termination”

Chicago Daily Law Bulletin By Randall R. Fearnow, Jaya F. White

Below is an excerpt:

Long-term care providers may have a new avenue to stave off financial collapse when faced with a proposed termination by the Centers for Medicare and Medicaid Services (CMS) — protection and reorganization under Chapter 11 of the Bankruptcy Code.

That strategy will likely prove to be a tough row to hoe if pursued in federal court here, though.

This interesting development stems from a recent decision in the U.S. Bankruptcy Court for the Middle District of Florida involving a 159-bed skilled-nursing facility operated by Bayou Shores SNF LLC. Bayou Shores derives 90 percent of its revenues from Medicare and Medicaid patients, a situation not uncommon for a skilled-nursing facility (SNF).


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