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General inquiries: 660-584-7111


Chapter 11 Explained

Many people have heard of Chapter 11, but don’t know exactly what it means.  Chapter 11 filings are about the road ahead.  A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.

John Knox Village East & Meyer Care Center has filed for reorganization under Chapter 11.  This course of action became a necessary step to move forward and ensure the continued operation and service to our community.  The goal of the board of directors and administration of John Knox Village East & Meyer Care Center is to continue to provide the same professional and compassionate care to our residents and their families as we always have and to be an integral part of the Higginsville community and surrounding areas.

Why Chapter 11?

This reorganization became necessary for two main reasons:  One, the lingering effects of the COVID pandemic have proven to be a continued challenge.  Reimbursement rates from Medicare and other insurance providers have become increasingly delayed after COVID.  Staffing challenges also continue to affect financial performance.  Additionally, compliance to COVID-related regulation has affected finances as well.  The second reason reorganization became necessary is that our former management chose to discontinue their relationship with John Knox Village East & Meyer Care Center in 2023.  The management provider had been managing the community in conjunction with the local board of directors for 27 years.  As part of that management contract, they were responsible for many of the financial, healthcare, marketing and operational systems in place at John Knox Village East & Meyer Care Center.  Unbundling those systems takes time and has resulted in delays in the revenue collection and payment cycles.  Filing for reorganization gives us time to get current with cashflow and payment schedules.  This delay is also affected by the board’s decision to return management functions to the local level, without a third-party management provider.  Taking those systems in house previously provided by third party management partners requires time as well.

Self Management

Returning to a self-managed organization without the influence of a third-party management company is a positive change.  This will allow our organization to return the fees previously spent on management services to the community of John Knox Village East & Meyer Care Center to enhance resident services and their homes.  Self-managing our community also frees up the board of directors and administration to make decisions that are best at the local level without outside influence both now and in the future.

What Chapter 11 Is Not

Chapter 11 reorganization is not walking away from the bills we owe.  They will be paid.  It is simply asking our creditors to give us time to get reorganized.  As part of the Chapter 11 filing, our administration will be providing a plan to the courts reflecting our plan to be debt free in a reasonable timeframe.  Many companies emerge from Chapter 11 stronger and better able to operate and that is our goal.

The Future

Filing for Chapter 11 and returning to a self-managed model of operation, sets John Knox Village East & Meyer Care Center up for success and positions us for the goal of continued operation and service to the Higginsville community and surrounding areas.  Our administrator, Tiffany Goetz, was born and raised in Higginsville.  She is managing the day to day operations of John Knox Village East & Meyer Care Center.  Our board members who all live in, work in or have ties to Higginsville will continue in their advisory and oversight capacity.

Should you have further questions, call us at 660 584 7111 and ask to speak to the administrator, Tiffany Goetz.

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