Nursing Home Chain Opens Ch. 11 After $258M FCA Order

By Jeff Montgomery (March 2, 2021, 10:17 AM EST) -- Six nursing home business affiliates of Consulate Health Care sought Chapter 11 protection in Delaware late Monday, less than a month after a federal district court in Florida entered a nearly $258 million, treble damages False Claims Act judgment against the subsidiaries for issues dating to 2011.

Salus Rehabilitation filed for Chapter 11 protection in Delaware Bankruptcy Court late Monday. (Photo by John Greim/LightRocket via Getty Images) Paul Rundell, chief restructuring officer of Salus Rehabilitation LLC, an affiliate of Consulate and parent LaVie Care Centers, said in a case-opening declaration that the bankruptcy and current Chapter 11 sale plans were driven...

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