Kings Terrace Nursing Home & Health Related Facility v. New York State Department of Social Services (In Re Kings Terrace Nursing Home & Health Related Facility)

MEMORANDUM OPINION

KAPLAN, District Judge.

This appeal from an order of the Bankruptcy Court (Conrad, J.) presents the question whether the New York State Department of Social Services (“DSS”) may recoup alleged pre-petition Medicaid overpayments to a nursing home against post-confirmation reimbursements where the DSS, although on notice of the bankruptcy, failed to file a notice of claim. The Court holds, as did the Court below, that the DSS’s right to recapture the alleged overpayments was a “claim” within the meaning of the Bankruptcy Code, that any right to recoupment is barred by the DSS’s…