Bankruptcy Law and the LTCOP

Nursing homes close voluntarily and involuntarily for financial and other reasons. This page includes resources that may be helpful to Ombudsman programs in responding to facility closures, and in understanding the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 went into effect on Monday, October 17, 2005. One of the provisions of this law is for the appointment of a patient advocate when a health care business files for bankruptcy. If the health care business provides long-term care services, the State Long-term Care Ombudsman may be appointed by the Bankruptcy Court as the “Patient Care Ombudsman.” The following resources are to help programs navigate this advocacy role.

U.S. Trustee Program

• Information about the U.S. Trustee Program
• Regions
• List of Field Offices Nationwide

Bankruptcy Law

• Amendment of US Code 1104, Section 333: Appointment of an Ombudsman to Act as a Patient Advocate
• U.S. Law - Long-Term Care Facility Defined in Title 11 US Code 101(27A)
• U.S. Law - Compensation of Officers in Title 11, Chapter 3, Subchapter II

Federal Guidance 

AoA/ACL Letter (April 13, 2012)
This letter clarifies whether or not it is a conflict of interest with OAA requirements for State LTC Ombudsmen and his or her representatives to receive compensation for services or reimbursement for expenses carried out while serving as Patient Care Ombudsman in bankruptcy cases.

Ombudsman Program Examples

View Ombudsman program examples on bankruptcy law.