Interesting new twist in The villages Health ongoing bankruptcy case
 

It was disclosed in an article earlier today, published by The Central Florida Public media, that the DIP financing in this case was provided by a company called PMA Lender LLC. According to Federal Reserve documents, PMA Lender LLC is a subsidiary of Citizens First Bank, the bank of The Villages. The anticipated sale of Citizens First to Seacoast Bank has been approved, and is scheduled to close around October first. Meanwhile, The Villages Health is pushing hard for the bankruptcy court to approve their sale to Centerwell, before the scheduled closing of the Citizens Bank/Seacoast acquisition, which would likely result in the DIP loan being repaid to PMA Lender LLC before the Bank merger closing. Up until this new news, the sales of both Citizens Bank and The Villages Health appeared to be two completely unrelated events. Now, there appears to be dots that could conceivably be connected between the two sales, especially given the somewhat suspicious timing between the two events and the push to expedite the sale by The Villages Health?

The objection filed with the bankruptcy court by United Healthcare highlights the seemingly suspicious insider DIP financing arrangement as not being a true arms length transaction, which could be motivated by not having to open up The Villages Healths financials to an independent third party and provide more transparency. In addition, Florida Blue and the U.S. Officials (on behalf of Medicare) have also filed objections for the court to consider.

Next Wednesday appears to be a big day in this case, as the bankruptcy court is scheduled to consider approving the sale. It would seem surprising for the judge to approve the sale without further discovery, given the objections filed with the court. Approving the sale at this point, without significant modifications, would effectively be dismissing the objections filed with the court. Should the court not approve the sale as proposed by the Villages Health legal counsel, the bankruptcy process could easily be drawn out for months, creating great uncertainty for the patients of The Villages Health and possibly have an impact on the Seacoast/Citizens First merger? Stay tuned, it could be a very interesting week ahead.

i am still suspicious of the bankruptcy. interesting to see how it plays out.

Wow. House of cards. Who is the genius behind the developer's financing wizardry, some former Enron guy??

any different than United Health Care's managed benefit program getting hacked, getting shut down for a week or more, stressing physician owned companies cash position by not getting paid timely, and United Health offering the physician groups bridge loans?

corporate predatory lending and predatory practices against non profit medical companies is a really poor image. . . but is happening all the time.

The TVH DIP financing is just an attempt at appearing to be an arm's length transaction, but its really not. . . its the developers monopoly of the CDD laws, and the reason why the original founder treated the owners very well with low cost beer at the town centers, looking for loyalists in government, and maintaining an appearance while picking your pocket. .

good luck to us!

Here is a link to the article cited in the original post:

The Villages Health gets ready to sell, but insurance companies are concerned

US CMS (Medicare) will be preforming more audits of MA insurers in the future. I expect more CMS clawbacks for unsupported MA risk claims made to the government. TVH is not an isolated case of clawbacks.

The writing below (link) from a healthcare technology consultant describes CMS’s new audit policy on MA plans and likely effects on medical providers such as TVH and on MA insurers such as United Healthcare and Florida Blue.

CMS Overhauls RADV Audits for 2025 | ChartRequest

For taxpayers, this is good.

Wise Move
 

The US government wants its money and caught this sale in plenty of time. Whether it is stopped or an injunction takes place the interests are known. There is a lot of money to recoup and if their was fraud, it needs prosecuted.

All of this is more likely a civil action by the US government rather than a criminal action. Don’t rely on television police shows for knowledge of federal statutes. Civil actions by the government generally go to recoup damages (e.g., monetary overpayments), penalties, interest, and perhaps fees. And maybe an injunction from doing business with the government for a certain time.

I expect this Chapter 11 bankruptcy case to move along promptly. No one wants a Chapter 7 liquidation.

Whether the government takes actions outside its potential money recovery in the bankruptcy case is anyone’s guess at this point.

Bankruptcy
 

Doctors are now starting to leave TVH. My husband's primary care doc just sent out a letter that he is leaving. My husband is now looking for his 5th doctor in the past ten years. Time to move to new practice that has some continuity. The previous 5 have all left TVH.

If Contact Changes
 

It will go through if the CONTRACT CHANGES. The loopholes for escape have to be closed for approval. Today’s government is all about clawing back funds. Count on this one to be an example and a chance for another press release about government efficiency.

IME, government will try to claw back money it isn't owed too!! I've seen it, and I've seen them lose instance after instance, if the institution toughs it out through the appeal process. IMO, this will be a document war. Do you have the paper to support the charge and less about the patient's condition that would justify the charge. Paraphrasing someone in a prior thread, just because they failed to properly document doesn't mean it didn't happen and wasn't needed, although that's exactly the way the government thinks.

Any reporting by any NPR agency needs special scrutiny.

I am surprised no-one has asked yet: What is "DIP" Financing? I hate unexplained initials....LOL...

It's been talked about on ToTV for weeks.

It's Debtor-in-Possession financing. It's financing (cash) necessary to continue operations, while the Bankruptcy case is pending.

Facts are facts