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May 10, 1999

Dow Newswires

Senator Seeks Contingency Plan For Nursing Home Bankruptcies

Dow Newswires

WASHINGTON -- Sen. Grassley, R-Iowa, chairman of the Senate Special Committee on Aging, has asked the Health Care Financing Administration (HCFA) to prepare for the possibility of nursing home chain bankruptcies.

HCFA, for its part, is calling upon state authorities to prepare for dire nursing home financial contingencies.

In letters sent to state authorities last Friday, HCFA said that " several national nursing home chains are reporting significant financial difficulty. " The agency told the states that they must have contingency plans to guard the health and safety of nursing home residents in the event of bankruptcy.

Sen. Grassley said he has asked HCFA for comprehensive contingency plans to protect nursing home residents if bankruptcy occurs. He said he expects to receive an update this week.

" People in nursing homes shouldn't be at risk if corporations have financial difficulties, " the Iowa Republican said. -By Connor;

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