Thursday, February 19, 2015

Tennessee Clinics File Objections in Bankruptcy Case

 By Walter F. Roche Jr.

The Saint Thomas Outpatient Neurosurgical Center and other Tennessee clinics have joined health care providers in several other states in filing objections to a disclosure statement filed in the bankruptcy case of the company blamed for a nationwide fungal meningitis outbreak.
In papers filed this week in U.S. Bankruptcy Court in Massachusetts, lawyers for the clinics cited a lack of information in the disclosure documents filed late last year. The objections were filed in the pending case of the New England Compounding Center.
"The lack of information is particularly troubling in light of the fact that at least some of the released parties apparently retained $18 million after settling with the Chapter 11 trustee," the objection states.
Cited in the filing was the fact that the underlying agreement will release from further responsibility various entities controlled by the owners of NECC.
The filing makes clear that while they are filing objections, the clinics do not want to delay the granting of compensation to victims.
Similar objections to the disclosure statement have been filed by other health care providers who are being sued by patients who were sickened after being injected with a fungus tainted spinal steroid shipped from NECC to health care providers across the country.
The U.S. Trustee also has filed objections to the disclosure on similar grounds.
A limited objection also was filed by lawyers for Tennessee victims of the outbreak which sickened 778 patients, 76 of whom died. State and federal regulators concluded that NECC was responsible for the outbreak.
A hearing on the disclosure statement is scheduled for Tuesday.

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