Skilled Nursing News September 6, 2024
Zahida Siddiqi

The sale of 15 bankrupt nursing homes in Pennsylvania might be under jeopardy, putting more residents in the state at risk of being displaced.

The sale is part of a financial reorganization plan of the nursing homes’ former owner South Hills Operations, a New York-based nursing home operator currently undergoing Chapter 11 bankruptcy. South Hills filed for voluntary protection from creditors May 17 under Chapter 11 of the U.S. Bankruptcy Code.

On Wednesday, the U.S. Department of Justice (DOJ) entered a $35.8 million judgment against South Hills Operations in Pittsburgh’s bankruptcy court, emphasizing South Hills was “jointly and severally liable” for underpaying its workers. A judge ruled earlier that South Hills Operations had “acted with malicious self-interest” in underpaying wages...

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