Genesis Healthcare Sues Medicare Over Facility’s Decertification

Genesis Healthcare Inc. sued the Centers for Medicare and Medicaid Services after the bankrupt company’s 148-bed Alabama facility was decertified and residents started being transferred.

Terminating Magnolia Ridge’s Medicare provider agreement and forcing the Gardendale, Ala.-based facility’s closure “stands to cause substantial and irreparable harm,” Genesis said in a Tuesday complaint filed in the US Bankruptcy Court for the Northern District of Texas.

The skilled nursing facility provider seeks injunctive and declaratory relief.

The termination became effective Sept. 15, which started a 30-day clock for Genesis to move 105 residents elsewhere and shut down the facility before payments from CMS ...