Recently, I had the good fortune of helping a physician file a Chapter 7 bankruptcy for their medical practice in the greater Philadelphia area. The US Bankruptcy Code defines a “health care business” in 11 U.S.C. §101(27A).
In order to help a physician or dentist file for bankruptcy, a bankruptcy attorney must step into the shoes of the Greek doctor Hippocrates when filing a healthcare bankruptcy. After all, US Bankruptcy Code 11 U.S.C. §333 was enacted with the Hippocratic Oath in mind – “do no harm.”
Section 333 requires the bankruptcy court to order the United States Trustee to appoint a disinterested patient care ombudsman in every healthcare business case under chapters 7, 9, or 11 unless the court finds that the appointment is not necessary “under the specific facts of the case.”
Let’s review the source document for 11 U.S.C. §333:
“οὐ δώσω δὲ οὐδὲ φάρμακον οὐδενὶ αἰτηθεὶς θανάσιμον, οὐδὲ ὑφηγήσομαι συμβουλίην τοιήνδε: ὁμοίως δὲ οὐδὲ γυναικὶ πεσσὸν φθόριον δώσω.” – Greek
The English version may be easier to digest:
“I will use those dietary regimens which will benefit my patients according to my greatest ability and judgment, and I will do no harm or injustice to them. Neither will I administer a poison to anybody when asked to do so, nor will I suggest such a course.” – Hippocratic Oath, AD 275
“Do No Harm” is the spirit and letter of 11 U.S.C. §333 – guard and protect the patient’s interests.
With that in mind, I created a Continuity of Care Retirement Plan for the retiring physician, considering the following factors months in advance of the actual bankruptcy filing:
Continuity of Care Retirement Plan:
• Patient Identification: Comprehensive patient list compilation and identification of all up-to-date electronic medical records (EMRs) to accurately reflect medical history, treatment plans, and any ongoing care requirements.
• Selection of a Successor Physician: Chosen based on criteria including professional reputation, experience, specialty alignment, and patient convenience.
• Transition of Care: Patients are notified of the impending retirement in writing, introduced to the successor physician, and assured access to their medical records and continuity of care.
• Written Implementation: Draft and distribute notices detailing the closure of the healthcare facility and the arrangements for continued care under the successor physician to ensure a seamless handover.
I enjoyed the complexity of this recent healthcare bankruptcy, and my client left their medical practice knowing they were committed to their patients to the very end, carrying out the last line in the Hippocratic Oath:
“I shall not let any lesser public or professional consideration interfere with my primary commitment to provide the best and most appropriate care available to each of my patients. To the extent that I live by these precepts, I shall be a worthy physician.”