Medicaid provider agreement remains legitimate during bankruptcy proceedings, judge rules

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Medicaid must continue to make payments to a Florida nursing home undergoing bankruptcy proceedings, a federal judge rule recently.

U.S. Bankruptcy Court Judge Michael Williamson said the Medicaid program cannot terminate their agreement with Rehabilitation Center of St. Petersburg, the Wall Street Journal reported. Medicaid officials said on August 3 that inspectors had found deficiencies including unattended medication carts with expired medications. Additionally, a resident listed as a sex offender who was put with a paralyzed resident, leading to a sexual molestation accusation.

The ruling could mean that facilities with poor ratings may still be eligible for financial help, the WSJ reported. The center filed for Chapter 11 protection on August 15 in U.S. Bankruptcy Court in Tampa, and listed about $12 million in bank debt.

Medicaid officials are appealing the ruling.