Health Law

Skilled Nursing Homes May Not Seek Protection From Medicare/Medicaid Termination Under the Bankruptcy Code

By: Anthony J. Ienna

St. John’s Law Student

American Bankruptcy Institute Law Review Staff

In In re Bayou Shores SNF, LLC, a district court found that a bankruptcy court lacked subject matter jurisdiction to thwart the regulation of Medicare and Medicaid funds of a non-compliant debtor. In particular, the district court, siding with the majority view, determined that 42 U.S.C. 405(h) bars bankruptcy courts from interfering with decisions made by the Centers for Medicare and Medicaid Services (“CMS”) relating to Medicare and Medicaid.