Infinia files Chapter 11
After enduring a county imposed bed hold, paycheck dilemmas and monetary penalties ordered by the Centers for Medicare and Medicaid Services (CMS), Infinia Healthcare in Cottonwood has filed for Chapter 11 bankruptcy.
So have Infinia's other 23 operating entities, including Infinia at Camp Verde. Parent companies, Infinia, Inc., Infinia Health Care Group, Inc. and Infinia at Arizona, Inc. also have filed for protection.
Each Infinia care facility provides long-term care for its residents. Cottonwood's Infinia is located at 197 S. Willard St. and Camp Verde's is at 15 E. Arizona 260. Infinia also has operating entities in Minnesota, Kansas, Utah and Nebraska. By Dec. 1 all of Infinia's care facilities had filed for Chapter 11.
The company's Cottonwood administer Jackie Lowe said the move won't have any impact on residents currently living at the care facilities.
"They've filed for reorganization," she said. "It won't effect residents or staff in any way."
Chapter 11 is sometimes referred to as "business reorganization." It allows the filing organization to negotiate its debts and propose a plan for reorganization.
David Grant serves as general legal counsel for Infinia, Inc. He said filing for Chapter 11 will actually help maintain the company's current operations.
"The intent is to continue to operate," Grant said. "And in fact, the filing of a Chapter 11 petition, given the protection … will really be able to help Infinia ensure the residents continue to get the care they need and the employees get their regular pay checks."
Maria Parham, the administrator for Infinia's Camp Verde location, said it will be "business as usual" for her staff.
"It doesn't effect any care we give to the residents," Parham said.
Grant says there are a couple of reasons why the bankruptcy petitions needed to be filed by each location. The Medicaid reimbursements that skilled nursing facilities often rely on were slow in coming, according to Grant.
"There have been some delays and problems getting Medicaid reimbursements," he said.
Back in June, the Cottonwood Infinia was put on a bed hold by Yavapai County for not having the proper staffing levels. The bed hold prohibited the facility from taking any new patients. The restriction has since been lifted, but Grant said it also could have played a part in the recent filing.
"Obviously whenever there is a bed hold it has an effect of the revenues of a facility," Grant said.
Infinia has also been in negotiations with the Internal Revenue Service in an attempt to settle some outstanding tax liability, Grant said.
Infinia is now anticipating a successful reorganization, according to Grant.