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LifeCare long-term care hospitals file for bankruptcy
Modern Healthcare

LifeCare Holdings, a Plano, Texas-based operator of long-term acute-care hospitals, filed for bankruptcy on Monday in U.S. Bankruptcy Court in Wilmington, Del., blaming declining Medicare rates for its need to seek Chapter 11 protection.

Private-equity owned LifeCare, which operates 17 healthcare facilities in nine states, claimed that Medicare’s establishment of patient criteria to qualify as a compliant long-term acute-care facility in 2015 led to reductions in reimbursement rates in 2015 and 2016, according to CEO James Murray’s declaration of bankruptcy filed with the court on Tuesday.