Closures

Nursing Home Closures and Bankruptcies

These important issues have been affecting ombudsman work around the country.  Nursing homes have closed their doors voluntarily and involuntarily for financial and other reasons. This page includes resources that may be helpful to ombudsmen in preventing and handling facility closures, and in understanding the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

 

Bankruptcy Law and LTC Ombudsmen

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 went into effect on Monday, October 17, 2005.  One of the provisions of this new law is for the appointment of a patient advocate when a health care business files for bankruptcy.  If the health care business provides long-term care services, the State Long-term Care Ombudsman may be appointed by the Bankruptcy Court as the “Patient Care Ombudsman.”  The following resources are to help ombudsmen navigate this new advocacy role:

US Trustee Program

• Information about the US Trustee Program can be found at http://www.usdoj.gov/ust/

• Regions

• List of Field Offices Nationwide

The Law

• Amendment of US Code 1104, Section 333: Appointment of an Ombudsman to Act as a Patient Advocate.
• US Law- Long-Term Care Facility Defined in Title 11 US Code 101(27A).
• US Law- Compensation of Officers in Title 11, Chapter 3, Subchapter II.

ORC Director's notes

• Conference Call Notes 2/1/06
• Memo to State LTC Ombudsmen from Lori Smetanka about the New Bankruptcy Law and Role of the State Ombudsman, October 13, 2005. 
• Lori Smetanka's notes from a 10/12/2005 conversation with John Willis about his role as a Patient Care Ombudsman during the bankruptcy of a major nursing home operator in 2002.

Sample Forms

• First Trinity Report Sample of a First Report
• Sixty Day Report AAA Format Outline given to each Local Ombudsman Program in Texas for details needed each sixty days
• Conifer Care Second Report Sample of a Second Report, to demonstrate the "update" status and certain details that were cut from a First Report
• Show Case Doc The latest "Show Case" Order that removes the burden of providing notice to each resident before reports are filed
• Motion in Aid of Appt The argument for the "Show Case" Order, as it was made by the Texas Attorney General's Office