TapestryHealth Files for Bankruptcy After Medicare Reimbursement Suspension

TapestryHealth voluntarily filed for Chapter 11 bankruptcy protection in federal court on November 6. The company attributed the need for bankruptcy protection to the federal Centers for Medicare & Medicaid Services suspension of Medicare reimbursements on which its physician entities rely. Mayor David Chess, who founded the healthcare organization, stated he stepped down from management four years ago but continues to serve as chairman of the board of directors.

TapestryHealth's financial stability was dependent on the continued operation of Medicare. The suspension of Medicare funding for the six entities under the Stratford-based Tapestry Management Services umbrella directly led to the bankruptcy filing.