HHCA files for bankruptcy
Home Health Corporation of America (HHCA) in King of Prussia, PA, recently filed voluntary petitions for reorganization with the United States Bankruptcy Court for the District of Delaware under Chapter 11.
The petitions allow HHCA to conduct business while under protection of the Bankruptcy Court, enabling the company to develop a plan to reorganize debt.
The company notes that several problems contributed to the filing, namely: The implementation of the Medicare interim payment system; overpayments and retroactive adjustments for previous Medicare cost reports; and the delay or denial of payments to HHCA by certain managed care and other non-governmental payors.
HHCA owns and operates 44 locations in Delaware, Florida, Illinois, Maryland, Massachusetts, New Hampshire, New Jersey, Pennsylvania, and Texas.