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SALT LAKE CITY (AP) -- Twenty more Infinia skilled-nursing facilities have filed for Chapter 11 bankruptcy protection, with Medicare reimbursement problems cited as part of the cause.
Three Minnesota facilities filed for bankruptcy protection last month and 20 more, including three in Utah, filed on Monday, said David Grant, general counsel for Bountiful-based Infinia Inc.
The three in Utah are at Alta, Ogden and Granite Hills. The other facilities are in Kansas, Minnesota, Nebraska and Arizona.
The 23 facilities are part of the Infinia Care Cos., which is made up of Infinia Inc. and two affiliated holding companies, Infinia at Arizona Inc. and Infinia Health Care Group Inc.
Systemwide, Infinia provides about 2,000 beds and employs about 2,000 workers.
Grant said the facilities will remain operational.
A 24th facility is proceeding with a change of ownership, Grant said. Though the company does not presently anticipate a sell-off during reorganization, Grant said the company will be negotiating its leases at several facilities.
"There are certain of the nursing homes where we are going to need to negotiate with landlords in order to operate profitably," he said. "If we cannot successfully negotiate the leases, we may have to look at other options."
Grant said the company has experienced cuts in Medicare reimbursements and underpayment by state-funded Medicaid programs, which contributed to the bankruptcy.
"There are many entities that manage or own skilled nursing facilities that have gone through similar reorganizations," he said.
He also said there was an ongoing tax dispute with the Internal Revenue Service.
"The Infinia organization actually held on a lot longer than a lot of nursing home chains," Grant said. "Ultimately, our goal is to quickly reorganize and emerge successfully from bankruptcy."
(Copyright 2003 by The Associated Press. All Rights Reserved.)