Centennial HealthCare Corp., Atlanta, filed for Chapter 11 bankruptcy protection citing Medicare funding cuts that took effect in October.
Centennial, which operates 86 nursing homes in 19 states and has $329 million in assets, filed for Chapter 11 to restructure its debt. The company plans to continue operations at its facilities and expects there will be no disruption in patient services. Recent Medicare cuts played a role in the bankruptcy filing, spokesman Alan Cosby said. "The cuts are making it difficult for all providers," he said. "The cost of caring for patients is greater than the reimbursements."
The American Health Care Association, which represents more than 12,000 nursing homes and assisted living facilities, said more Medicare cuts could result in a wave of bankruptcies similar to those in 1999 and 2000. The Centennial bankruptcy "serves as a dangerous red flag to Congress that there is a serious human cost from the $1.8 billion Medicare cuts," association President and CEO Charles Roadman II said in a statement. -- by Patrick Reilly