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Valley Health System's Court Holds that a Patient Care Ombudsman is Unnecessary

ST&G, on behalf of Valley Health System, a California Local Health Care District (the "District"), moved for an order that the appointment of a patient care ombudsman, which would otherwise be required in a health care case under Bankruptcy Code section 333(a)(1), was unnecessary for the protection of patients under the specific facts and circumstances of the case.  In a published decision, Judge Carroll outlined several factors that should be considered in determining whether the appointment of a patient care ombudsman should be excused.  The Court found that "[w]hile two factors tip in favor of an ombudsman, the balance of the [] factors weigh against the immediate appointment of a patient care ombudsman pursuant to ยง 333(a)(1) under the specific facts and circumstances of this case," and declined to appoint one.  See In re Valley Health Sys., 381 B.R. 756 (Bankr. C.D. Cal. 2008).

 
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