In every bankruptcy of a “health-care business” as defined in the Bankruptcy Code, the court must consider appointing a patient care ombudsman pursuant to section 330 of the Bankruptcy Code. A patient care ombudsman is an uncharacteristic and, as of 2005, new player in the bankruptcy arena. Before then, the statutory objectives of the participants in the arena were to maximize the value of the estate for creditors. The patient care ombudsman, in contrast to other traditional players in the bankruptcy arena, is focused solely on the patients’ well-being in the health-care facility.
This article will discuss (1) how bankruptcy courts determine whether to appoint a patient care ombudsman; and (2) the responsibilities assumed by a patient care ombudsman, once she is appointed in a bankruptcy case.
Appointing a Patient Care Ombudsman
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