Next Big Futures article Elmwood nursing homes in Louisiana and Florida have filed for Chapter 11 bankruptcy protection, a process that could make it impossible to care for residents.
The nursing homes are the largest in the country and have faced a lack of funding for their care and staffing.
According to the AP, Elmwood, a nursing home in Louisiana, has had a budget deficit of $9.3 million since it was formed in 2012.
The AP reported that the nursing home is seeking $10.5 million in payments from the state, which is why the bankruptcy petition filed Wednesday seeks a payment of $4.7 million to cover the cost of care and ongoing staff expenses.
The filing also seeks to increase the value of the homes’ assets to $12.7 billion.
State and federal officials are trying to find ways to help the nursing homes stay afloat.
The AP reported the state’s attorney general said the state was trying to come up with a plan to help make sure the nursing facilities could continue to function.
The state and local governments have been working with a group of local investors to find a solution to keep the hospitals afloat, and the state has offered loans, but that process is still ongoing, the AP reported.
Officials are also considering an arrangement where the state would pay the nursing care facilities a fixed rate of return to keep them afloat.
A hospital-run facility would have a lower rate of returns than a nursing facility with no staff, which could mean more money for the state to spend on other areas, the report said.
This is a developing story.
More to come.