Quote:
Originally Posted by kingofbeer
I do not know what the bankruptcy judge's responsibility is. My understanding is that he is working on behalf of the creditors not the patients.
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My understanding is that the bankruptcy judge (Judge Lori V. Vaughan in TVH case) in a chapter 11 case has to strike a balance between the interests of both the debtor and creditors, but not the business customers (The Villages Health patients in this case). That being said, the court tries to facilitate an outcome that keeps the business viable and ongoing, which would indirectly benefit TVH’s patients. The creditors are divided into various priority classes, with secured creditors being top priority over unsecured creditors. My understanding is that the CMS (Medicare overpayments) creditor claims are considered priority unsecured claims, which fall in between secured claims and unsecured claims.