The second-largest nursing home operator in the U.S. filed for Chapter 11 bankruptcy protection on January 18. Atlanta-based Mariner Post-Acute Network blamed its insolvency on Medicare cuts made by the 1997 Balanced Budget Act. The organization operates more than 400 nursing homes nationwide, and claimed that the 1997 law cut its Medicare reimbursement by $115 per resident, per day.

This is the third major long-term care chain to file bankruptcy in the last six months. Louisville, KY-based Vencor—which operates 293 nursing homes and 56 hospitals—and Sun Healthcare—which operates 369 nursing homes—both filed for Chapter 11 in 1999.

Mariner’s bankruptcy had been expected for some time. In May of 1999, the company laid off 7,300 of its 65,000 workers and closed its rehabilitation business.