Later, on December 8 and 9, the ISDH conducted a revisit survey and concluded 2 Under 42 U.S.C. On November 17, CMS notified Nightingale that the agency would terminate Nightingale’s agreement on December 10, unless Nightingale corrected its irregularities. 2 The ISDH found that Nightingale’s deficiencies placed its patients in “immediate jeopardy,”3 and recommended that the Centers for Medicare & Medicaid Services (“CMS”), which administers Medicare, terminate Nightingale’s Medicare agreement. In October and November 2015, the Indiana State Department of Health (“ISDH”) conducted a survey at one of Nightingale’s facilities and concluded that Nightingale had failed to comply with the applicable requirements. In the course of this business, Nightingale signed a provider agreement with the United States Secretary of Health and Human Services to receive Medicare reimbursements and agreed to conform to certain statutory and regulatory requirements. provides home health care services in a number of states, including Indiana. Background Nightingale Home Healthcare, Inc. 1 For the remainder of the opinion, we refer to Nightingale, Home Care Providers, any other related subsidiaries, and Dr. § 405(g), and vacate and remand with instructions to dismiss without prejudice. Brar’s constitutional claims were also jurisdictionally barred, pursuant to 42 U.S.C. 1 The district court dismissed those claims with prejudice. Brar, filed a civil action in the district court, alleging that certain Indiana state surveyors had committed various constitutional violations leading up to Nightingale’s Medicare termination. Separately, Home Care Providers, Inc., Nightingale’s sole shareholder, and its owner, Dr. We conclude, however, that the issue of whether the bankruptcy court properly granted the injunction was moot, as the bankruptcy court had dissolved the underlying injunction prior to the district court’s ruling. On appeal, the district court concluded that the bankruptcy court had lacked jurisdiction to issue an injunction and reversed the order. Nightingale sought and received a preliminary injunction from the bankruptcy court that prevented the government from terminating Nightingale’s agreement. This consolidated appeal was prompted by the federal government’s termination of Nightingale Home Healthcare, Inc.’s Medicare provider agreement. _ Appeals from the United States District Court for the Southern District of Indiana, Indianapolis Division. UNITED STATES OF AMERICA, et al., Defendants-Appellees. NIGHTINGALE HOME HEALTHCARE, INC., Plaintiff-Appellant, v. _ IN RE: NIGHTINGALE HOME HEALTHCARE, INC., Debtor. KELLY HEMMELGARN, et al., Defendants-Appellees. In the United States Court of Appeals For the Seventh Circuit _ Nos. Nightingale’s constitutional claims were jurisdictionally barred by 42 U.S.C. The issue of whether the bankruptcy court properly granted the injunction was moot. In consolidated appeals, the Seventh Circuit vacated the decisions. Nightingale separately initiated a civil rights action, which was dismissed. CMS filed a claim for restitution that is pending. On September 16, 2016, the district court concluded that the bankruptcy court had lacked subject-matter jurisdiction to issue the injunction and stated that the government could seek restitution for reimbursements for post-injunction services. After failing to complete a sale of its assets, Nightingale discharged patients and closed its Indiana operations by August 17, 2016. A Medicare ALJ and the Departmental Appeals Board affirmed termination.
While an appeal was pending, ISDH again found “immediate jeopardy.” The injunction was dissolved. The bankruptcy court granted Nightingale relief.
Before CMS terminated the agreement, Nightingale filed a petition to reorganize in bankruptcy and commenced sought to enjoin CMS from terminating its provider agreement during the reorganization, to compel CMS to pay for services already provided, and to compel CMS to continue to reimburse for services rendered. ISDH conducted a revisit and concluded that Nightingale had not complied. The Indiana State Department of Health (ISDH) visited Nightingale’s facility and concluded that Nightingale had deficiencies that placed patients in “immediate jeopardy.” ISDH recommended that the Centers for Medicare & Medicaid Services (CMS), terminate Nightingale’s Medicare agreement. Nightingale provided home health care and received Medicare reimbursements.
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