Supreme Court shuts down case over bankrupt provider's Medicaid, Medicare funding

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The U.S. Supreme Court declined Monday to step in and review the case of a Florida skilled nursing provider looking to preserve its Medicaid and Medicare funding.

Bayou Shores SNF LLC submitted a petition to the high court in February, requesting the court review a previous appeals court ruling that permitted health officials to terminate the provider agreement for the company's St. Petersburg, FL, facility, even though it had filed for bankruptcy protection.

The provider argued that the case was “an optimal vehicle” to address questions related to issues that apply to bankruptcy cases and claims under the Medicare Act.

An earlier court ruling had allowed the facility to continue receiving Medicare and Medicaid reimbursements while it reorganized. A bankruptcy court later allowed state officials to continue the process of revoking the reimbursements, citing an Immediate Jeopardy situation that could pose a threat to residents.

The case was notable, according to law experts, since it has since been cited by other judges to make the case that bankruptcy courts do not have the authority to make decisions regarding provider agreements.