Haven Healthcare files Chapter 11 bankruptcy; state seeks appointment of trustee

By Caroline Salls

Pittsburgh, Nov. 26 - Haven Healthcare Management, LLC filed Chapter 11 bankruptcy Tuesday in the U.S. Bankruptcy Court for the District of Connecticut.

In connection with the filing, the State of Connecticut has asked the court to appoint a Chapter 11 trustee to oversee the company's bankruptcy case.

According to the motion, the Haven entities diverted large amounts of their Connecticut state Medicaid reimbursements for investments that benefited insiders, "while failing to pay for services necessary to protect the health and safety of patients and leaving the Haven entities in financial jeopardy."

The state said many of the providers of Haven's goods and services needed for patient care cut off or threatened to cut off their services.

In the trustee appointment motion, the state said the company had $46.46 million of debt as of July 31, not including funds owed under long-term notes.

The state said Haven also owed $12.9 million to trade creditors, in addition to a total of $11.65 million owed on a line of credit.

The company's largest unsecured creditors include:

• Omnicare Value Health Care, Covington, Ky., with a $13.71 million trade claim;

• Medventures Consulting, LLC, Bell, Fla., with a $1.82 million disputed consulting claim;

• McKesson Medical Supply, Richmond, Va., with a $1.65 million trade debt claim;

• Tax Administrator - Provider Tax, Providence, R.I., with a $1.39 million tax claim;

• State of Vermont - Path, Williston, Vt., with a $1.32 million tax claim;

• PFG, Springfield, Mass., with a $1.02 million PFG note and invoices claim; and

• Anthem, with a $1.01 million self insured health claim.

Haven is a Middletown, Conn.-based nursing home operator. Its Chapter 11 case number is 07-32722.

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