In Re South Park Care Associates, Inc.

Memorandum Opinion

ARTHUR B. FEDERMAN, Bankruptcy Judge.

Creditor Health Care Financing Administration (“HCFA”) moved this Court to approve setoff of a prepetition overpayment by HCFA against a prepetition underpayment which resulted from the granting by HCFA of debtor’s request for a cost limit exception. This is a core proceeding under 28 U.S.C. § 157(b)(2)(A) over which the Court has jurisdiction pursuant to 28 U.S.C. §§ 1334(b), 157(a), and 157(b)(1). For the reasons set forth below, I find that HCFA’s right of setoff survived the confirmation and modification of debtor South Park Care…