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Embattled Florida brain hospital emerges from bankruptcy

The Florida Institute for Neurologic Rehabilitation filed for bankruptcy, and a judge has approved its reorganization plan because of the hospital's reports that it improved its cash flow. The bankruptcy was filed after reports that the facility was in debt ranging from $3 million to $30 million owed to between 103 and 346 creditors. A spokesperson for the medical company said that a rash of negative media reports about alleged patient mistreatment led to a major decline in revenue.

Those reports centered around allegations of past abuse which claimed that some of the hospital's staff were abusive to two autism patients. Also alleged was that a patient intentionally swallowed fish hooks and batteries in an escape attempt. Despite these allegations and the bankruptcy, The Florida Institute for Neurologic Rehabilitation maintained that it was still one of the best brain injury treatment centers in the country.

An owner of the facility said that low-paid staffers are often unable to deal with the patients, who can often be difficult to deal with because of their brain injuries. He added that the only recourse available to him when a worker abuses a patient is to fire them. A report stated that the facility received hundreds of thousand dollars a year to pay for one abused patient, yet the owner said that the caretakers are often paid just slightly more than minimum wage.

Chapter 7 or Chapter 11 bankruptcy can happen to any company at almost any time. Business owners in need of legal debt relief like a Chapter 13 bankruptcy may be able to receive assistance from a Florida attorney experienced in the vagaries of business bankruptcy. Such help may include working to relieve credit card debt as well as that from unpaid bills from service rendered.

Source: WTSP, "10 News Investigators: More allegations of abuse at Florida Institute of Neurologic Rehabilitation," Mike Deeson, Dec. 11, 2012

Source: WTSP, "FINR: Florida brain injury hospital emerges from bankruptcy", September 05, 2013

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