The Stamford Advocate had an article about five nursing homes filing for bankruptcy. New Jersey-based HealthBridge Management claims the nursing homes need to file for bankruptcy because they can’t afford to comply with conditions of an expired contract, negotiated in 2004. Nursing home workers, however, claims the filing is just another evasive maneuver in an increasingly ugly battle between the centers and their employees. After the U.S. Supreme Court ruled against them in a contract dispute with their workers, five Connecticut nursing homes, including one in Stamford, filed for Chapter 11 bankruptcy reorganization Sunday, claiming pension and benefits costs have crippled them.
“A dispute over negotiating a new contract — and HealthBridge’s unilateral implementation of a “last, best and final” contract that many workers found unfair and illegal — eventually led union workers to walk off the job in July. Late last year, a U.S. District Court judge granted an injunction to restore the caregivers to their job, and halt HealthBridge’s implementation of the “last, best and final” contract. HealthBridge made several attempts to appeal the decision, but was unsuccessful.”
“Under state statute, if a nursing home is either unstable financially or has a bad record of care, its operations can be placed in the hands of a state-appointed receiver who can then market and sell the home to a different operator. The receiver takes over the license until a new operator is secured — or until the facility closes if it’s determined that it can’t saved.”