The federal government is attempting to block the sale of QHC Facilities, an Iowa-based bankrupt nursing home chain, due to an unpaid $1 million debt to CMS, Iowa Capital Dispatch reported Oct. 11.
CMS asked a bankruptcy judge to reject the proposed transfer of Medicare provider agreements for three QHC care facilities, citing the deal would result in QHC only paying $509,000 to $739,600 of the $1 million owed to CMS.
QHC, with more than 300 other creditors seeking payment, also owes the Iowa Department of Health and Human Services more than $3 million in unpaid fees. The organization has asked that its debt to the state be treated as a "lower priority." The state of Iowa has not yet filed any written objections to the planned sale of the QHC chain.