It has been announced that the GraceWood rehabilitation and nursing care facility has filed for Chapter 11 bankruptcy. They have decided to reorganize their business largely due to an overwhelming amount of accusations and consequential fines relating to patient abuse.
The nursing home, based in Pinellas Park, has had more than its fair share of problems in recent times, with the allegations placing it on a national list of the most-troubled institutions in the country.
The bankruptcy was filed last month, and the court documents issued show that the facility owes creditors in excess of $3.2 million. Around half of this amount was owed to the Florida Agency Health Care Administration (FAHCA). Their parent company, Senior Care Group Inc. also filed for bankruptcy under Chapter 11 for similar reasons.
The GraceWood nursing home was purchased by Senior Care Group back in 2005. The 120-bed center was hoped to be a financial success and offer much needed care services for the local community. However, it has been fined at least three times since 2012 in relation to the poor care and neglect of its residents. It is hoped that the company can relieve these problems by reorganizing their business under Chapter 11.
Chapter 11 bankruptcy is a smart option for companies that are facing large financial difficulties and believe that their problems could be mitigated through a business reorganization. It gives the business time to submit a new financial plan and a proposal for how they intend to pay back their creditors.
Source: Tampa Bay Times, “Troubled Pinellas Park nursing home files bankruptcy reorganization,” Aug. 25, 2017