Carematrix Corp. ex rel. Carematrix of Needham, Inc. v. Division of Medical Assistance

van Gestel, J.

This matter is before the Court on cross motions for summary judgment. At issue is the interplay between the effect of the automatic stay in bankruptcy and the difference between setoff and recoupment. At stake is about $500,000 that the Division of Medical Assistance (the “Division”) withheld from Medicaid payments it made to the debtor, CareMatrix Corporation (“CareMatrix”), after its bankruptcy was commenced.

BACKGROUND

Because the facts are essentially agreed to by the parties, the Court will not set out the usual detailed background exposition, but rather will include only a…