Coping with Medicare overpayments and other cash-flow problems: bankruptcy and nonbankruptcy alternatives

Over the last several years, many home care agencies have encountered serious financial difficulties as a result of, among other reasons, Medicare's attempts to recover alleged overpayments. Depending on the cause of the financial difficulties, a provider, in consultation with accountants and attorneys, may decide to restructure its business through either a nonbankruptcy workout or a Chapter 11 bankruptcy filing.