IN RE ST. MARY HOSP.

Bankruptcy No. 88-11421S, Adv. No. 88-0836S.

89 B.R. 503 (1988)

In re ST. MARY HOSPITAL, Debtor. Roger B. HISER, Trustee in Bankruptcy, Plaintiff, v. BLUE CROSS OF GREATER PHILADELPHIA, Otis R. Bowen, M.D., Secretary of Health and Human Services, Defendants.

United States Bankruptcy Court, E.D. Pennsylvania.

As Amended August 23, 1988.


Attorney(s) appearing for the Case

Marc J. Sonnenfeld, Richard D. Gorelick, Morgan, Lewis & Bockius, Philadelphia, Pa., for Blue Cross.

Jim Newman, Deputy Chief Counsel, Reg. III, HHS, Philadelphia, Pa., for HHS.

Michael L. Molinaro, Katten, Muchin, Zavis & Mannino, P.C., Chicago, Ill., Thomas E. Sweeney, Chadds Ford, Pa., Jos. T. Sebastianelli, Ernest T. Tsoules, Jr., Sebastianelli Law Assoc., Paoli, Pa., for Franciscan Health Ser.

Jeffrey B. Schwartz, Mark H. Gallant, David S. Fishbone, Philadelphia, Pa., for trustee.

Roger B. Hiser, East Greenville, Pa., trustee.

Henry F. Siedzikowski, Daniel Carrigan, Jonathan Vipone, III, Baskin, Flaherty, Elliott & Mannino, P.C., Daniel E. Farmer, Harris B. Savin, Peter Rosenthal, Diamond, Polsky & Bauer, Philadelphia, Pa., for debtor.

Howard T. Glassman, Blank, Rome, Comisky & McCauley, Philadelphia, Pa., for Nurses, Inc.

Henry Sommer, Richard P. Weishaupt, Louis S. Rulli, Community Legal Services, Inc., Philadelphia, Pa., for Community Parties.

James J. O'Connell, Kevin Callahan, Office of U.S. Trustee, Philadelphia, Pa., U.S. Trustee.

Bryna L. Singer, Cohen, Shapiro, Philadelphia, Pa., for Professional Health Care.

Stephen F. Gold, Philadelphia, Pa., for adversary plaintiffs.

Harold Berzow, Finkel, Goldstein & Berzow, New York City, for Hospital Supply Co.

Virginia R. Powel, Asst. U.S. Atty., Philadelphia, Pa., for USA, HUD and HHS.

Charles M. Golden, Philadelphia, Pa., for Nurse Finders.

George Miller, CPA, Philadelphia, Pa., Examiner.

Seymour Kurland, City Solicitor, Richard Gold, 1st Deputy, Cynthia E. White, Chief Asst. City of Philadelphia, Philadelphia, Pa., for City of Philadelphia.

Gary M. Schildhorn, Mark J. Packel, Philadelphia, Pa., for Creditors' Comm.

Nathalie D. Martin, Dean M. Schwartz, Philadelphia, Pa., for UMEDCO.


OPINION

DAVID A. SCHOLL, Bankruptcy Judge.

The several matters before us in this bankruptcy case, which has been problematical ever since its filing just a little over three months ago,1 all revolve around the right of the federal Department of Health and Human Services (hereinafter referred to as "HHS") to recoup pre-petition over-payments of Medicare reimbursements for services against post-petition Medicare advances and remittances...

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