IN RE SACRED HEART HOSP. OF NORRISTOWN

Bankruptcy No. 94-13275DAS. Adv. No. 94-0490DAS.

175 B.R. 543 (1994)

In re SACRED HEART HOSPITAL OF NORRISTOWN, d/b/a Sacred Heart Hospital and Rehabilitation Center, Debtor. SKILLED NURSING PROFESSIONAL SERVICES, A DIVISION OF SKILLED NURSING HOME CARE, INC., and Facilities Management, Inc., Plaintiffs, v. SACRED HEART HOSPITAL OF NORRISTOWN, d/b/a Sacred Heart Hospital and Rehabilitation Center, Defendant, and Midlantic Bank, N.A., successor to Continental Bank, and Allmed Financial Corporation, Intervening Defendants.

United States Bankruptcy Court, E.D. Pennsylvania.

December 2, 1994.


Attorney(s) appearing for the Case

Vincent J. Marriot, III, Ballard Spahr Andrews & Ingersoll, Philadelphia, PA, for debtor.

Mark S. Halpern, Furman & Halpern, P.C., Bala Cynwyd, PA, for Skilled Nursing Professional Services, a Div. of Skilled Nursing Home Care, Inc., and Facilities Management, Inc.

John J. Koresko, V, Koresko & Noonan, Norristown, PA, for certain employee claimants.

Frederic Baker, Asst. U.S. Trustee, Philadelphia, PA.

J. Gregg Miller, Pepper, Hamilton & Scheetz, Philadelphia, PA, for Midlantic Bank, N.A., successor to Continental Bank.

Claudia Z. Springer, Duane Morris & Heckscher, Philadelphia, PA, for Municipal Bonds Investors Ins. Co.

W. Jeffrey Garson, Cohen, Shapiro, Polisher, Shiekman & Cohen, Philadelphia, PA, for Allmed Financial Corp.

Joel H. Levitin, Dechert Price & Rhoads, Philadelphia, PA, for Creditors' Committee.


OPINION

DAVID A. SCHOLL, Chief Judge.

A. INTRODUCTION

The Plaintiffs in the instant proceeding have, in their post-trial briefing, narrowed the issue before us to whether this court should declare that accounts receivable generated by their home health care services performed on behalf of the Debtor hospital are not property of the Debtor's estate because they constitute the res of a constructive trust created by the Debtor in the Plaintiffs...

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