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Recently the United States Bankruptcy Court for the Middle District of Florida issued an order prohibiting the Centers for Medicare and Medicaid Services (CMS), the Florida Agency for Health Care Administration (AHCA) and any managed care company from terminating the debtor skilled nursing facility’s provider agreements. This ruling is significant because it determined that the facility’s Medicare and Medicaid provider agreements are part of the bankruptcy estate and cannot be terminated unilaterally by CMS or AHCA when the facility has petitioned for federal bankruptcy protection.

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