Vencor, HCFA work out deal on overpayments.Vencor Inc. has reached an agreement with HCFA HCFA abbr. Health Care Financing Administration HCFA, n.pr See Health Care Financing Administration. to extend the repayment of about $90 million of Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. overpayments. The full overpayment o·ver·pay v. o·ver·paid , o·ver·pay·ing, o·ver·pays v.tr. 1. To pay (a party) too much. 2. To pay an amount in excess of (a sum due). v.intr. To pay too much. amount was originally due by April 23, 1999. The Louisville, Kentucky-based provider is now obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to repay the overpayment over 60 monthly installments of about $1.5 million commencing May 8. After November 30, the balance due will bear interest at the statutory rate of 13.75 percent, making Vencor's monthly payment about $2 million. Meanwhile, Vencor was also able to buy a little time from Ventas Inc., its principal landlord. The two parties entered into an agreement providing that Vencor could pay its April 1999 rent (about $18.5 million) on a deferred basis on specified dates throughout the month. But at press time, Vencor's financial problems had worsened. The company announced that it elected not to make a $14.8 million interest payment on $300 million 9-7/8 percent senior subordinated notes due 2005. The notes provide for a 30-day grace period before an event of default occurs. Vencor is negotiating with holders of the notes to obtain a sustainable capital structure. |
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