Healthcare Group in California Attempts to Mediate on Judgement

Skilled Healthcare Group has agreed not to seek bankruptcy during a mediation process agreed to with plaintiffs.

A California healthcare group has agreed with other members of a case to mediate the situation.

The agreement, which still needs approval from a judge, stipulates that Skilled Healthcare Group Inc. and other defendants would not file bankruptcy until the end of the mediation period, which lasts until August 9.

A jury in the state has ordered the company to pay $671 million for not properly staffing nursing homes. During the mediation time, plaintiffs have agreed not to seek a judgment based on the court's findings.

California law stipulates that every nursing home patient have a minimum of 3.2 hours of nursing care every day, and the jury found that to not be the case with Skilled Healthcare Group.

Business bankruptcies are up in California, regardless of if they are tied to a court action. A recent report from Equifax showed that the Western state has six of the top 15 metropolitan areas seeing more firms filing.