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The Patient Care Ombudsman: Controlling Costs

By Martin G. Bunin and Nadjia I. Bailey

The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”) gave patients of insolvent health care facilities a clear voice in bankruptcy proceedings by creating a new role in bankruptcy cases ' the Patient Care Ombudsman (“PCO”). Bankruptcy Code ' 333 requires bankruptcy courts to appoint a PCO “to monitor the quality of patient care and to represent the interests of the patients,” which may include interviewing patients and physicians, conducting on-site inspections, monitoring services provided and reviewing patient records. See 11 U.S.C. ' 333(b). Every 60 days following appointment, the PCO is required to report its findings to the court in writing or at a hearing. Importantly, the PCO is also required to warn the court immediately if patient care significantly declines or is materially compromised in any way.

The appointment of the PCO, which must occur within 30 days of a Chapter 7, 9 or 11 bankruptcy petition date, is mandatory in all cases involving health care facilities, unless “the court finds that the appointment of such ombudsman is not necessary for the protection of patients under the specific facts of the case.” 11 U.S.C. ' 333(a)(1) (emphasis added).

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