A nonprofit that owns 13 companies — including skilled nursing, home health, home health care, and rehab providers — in Florida, North Carolina, Oklahoma and Georgia has filed for chapter 11 bankruptcy.
The Tampa, Fla.-based Senior Care Group seeks to reorganize its finances as part of the bankruptcy, according to a July 27 filing in the U.S. District Bankruptcy Court for the Middle District of Florida. The Tampa Bay Business Journal first reported on the filing.
Six other Senior Care Group facilities in Florida also simultaneously filed for chapter 11 bankruptcy, according to the filing. Those facilities are: SCG Laurellwood and SCG Baywood in St. Petersburg; SCG Gracewood in Pinellas Park; SCG Harbourwood in Clearwater; Key West Health and Rehabilitation Center in Key West; and The Bridges Nursing and Rehabilitation in Tampa.
The nonprofit, which expanded steadily between 1998 and 2006, first ran into problems during the 2008 credit crisis.
“Certain obligations were restructured during this time and other secured creditors obtained deficiency judgments, which had the combined effect of saddling Senior Care with significant legacy debts,” a July 31 court filing reads. “Changes in Medicaid and Medicare adversely impacted Senior Care’s cash flow at a time it was struggling to deal with the legacy debts. Reductions in reimbursement rates at times when the costs of complying with increased government regulations resulted in an inability to pay certain debts as they came due.”
Currently, Senior Care Group owes $242,459 in unsecured claims to Blue Cross Blue Shield of Georgia and a combined total of $408,290 in unsecured claims to Florida’s Agency for Health Care Administration. There are also numerous other smaller unsecured claims, court records show.
A legal representative for Senior Care Group didn’t immediately return a request to comment on the filing.
Written by Tim Regan