Nursing homes are expected to maintain certain conditions by state and national agencies. Even if these facilities take no federal or state funds and are privately funded, they are still expected to conform to a certain quality of care. In the case of homes that receive Medicare and Medicaid funding, these funds can be cut off if conditions are found to be deficient.
In the on-going saga of New Beginnings Care, a company that owns several nursing homes in Georgia, a federal judge has granted them a temporary reprieve. A Chattanooga federal judge has halted the closure of a Georgia nursing home owned by the Hixson, Tennessee-based New Beginnings Care.
U.S. Bankruptcy Court Judge Nicholas Whittenberg brought a stop to the shutoff of Medicare and Medicaid payments to a Tybee Island, Georgia facility called Oceanside Healthcare and Rehab. This judgment came after the David Fulton, the attorney for New Beginnings Care argued that they were not being treated fairly.
On November 5, 2015, the Georgia Department of Community Health found “deficiencies” at the facility. Inspectors reported that the walk-in freezer was empty and broken. The facility also had only one working clothes washer and a broken door was contributing to a fly-control problem.
However, the state did not reinspect to see that these issues were corrected until more than 5 months later, on April 25 of this year. The problem with taking so long to reinspect, Fulton argued, was that the facility was poised to lose its Medicare and Medicaid payments on May 5th due to being out of compliance for six months since November 5th. The inspection on April 25th gave the facility no time to fix any new deficiencies found during that inspection.
The preliminary injunction will halt any cutoff of payment until no sooner than July 1st. This is when a hearing on the matter is scheduled for the bankruptcy courthouse in downtown Chattanooga. This injunction will also allow New Beginnings Care to reorganize under Chapter 11 bankruptcy. The company hopes to sell the business with the help of a New York City investment banking firm.
If you believe that yourself or a loved one has been the victim of nursing home abuse or neglect, you may be entitled to compensation. Contact the offices of Schenk Smith. Our dedicated attorneys will help you get the compensation you deserve. Contact us today.