OCTober 9, 2000

Medi-Minutes
Computer Glitch Forces NJ Nursing Home to File Bankruptcy

Another nursing home has filed for bankruptcy protection, but this time it wasn’t Medicare cuts that caused it. A computer glitch caused the New Jersey nursing home to miss out on $350,000 of Medicaid reimbursements.

The Medicaid reimbursement program in New Jersey is operated by Unisys Corp., Inc., a computer manufacturing and consulting firm that also provides services to Kentucky, Louisiana, Massachusetts, and Oklahoma. No other nursing homes have complained about delayed reimbursements from the company, which processes 186 million claims per year and disburses $16 billion.

Continental Norwood Holdings, Inc., owner of the home, said the situation is temporary. "The company is not bankrupt. The Chapter 11 was done to protect the company until the problem is worked out."