[Caymus]

Originally Posted by tophcfa

- TVH (The Villages health) problems began in late 2024, when Medicare auditors flagged $250 million in billing overpayments, a sum that could balloon with penalties
- Centerwell (CW) was negotiating to purchase TVH (The Village’s Health) last fall when they discovered the billing and coding issues and backed out, about the same time TVH reportedly self reported the issue
- Filing for chapter 11 allowed TVH to restructure its debt while continuing its operations, but it liabilities remain a ticking time bomb
- The deal TVH reached with CW is designed to allow CW to acquire the assets, but sidestep the TVH’s looming liabilities. CW has entered into a “ stalking horse” purchase agreement to purchase TVH assets at a minimum floor price, but the sale will ultimately go through an auction process. The purchase agreement gives CW an advantage over other bidders as they have the option to match other bidders price and are now privy to information to do their due diligence. The court will oversee the sale process
- It’s not entirely clear whether Chapter 11 protects TVH from its Medicare related government liabilities, chapter 11 does not protect from TAXES owed to the government
- An ultimate sale to CW is by no means a done deal at this point, they have simply entered into a stalking horse asset purchase agreement
- Court fillings indicate Villages Health Holding Company has a 66.3% Equity interest in TVH.
- Stay tuned, this will most definitely get more interesting as facts are leaked out or become public information

So, when it's all over who will be financially impacted? Whoever owns Village Health holding company? Bond Holders (if any)? The money lenders? US Government?