AMANN BURNETT defends Preference Claim……Successfully So Far-STEWARD HEALTHCARE SYSTEM, LLC, Bankr. S.D., Texas
On May 6, 2024, Steward Health Care System LLC and 166 of its affiliated debtors (collectively, the “Debtors”) each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. The cases are pending before the Honorable Christopher M. Lopez and are jointly administered under Case No. 24-90213.
As of the Petition Date, the Debtors owned and operated the largest private physician-owned for-profit healthcare network in the United States. Headquartered in Dallas, Texas, the Debtors’ operations on the Petition Date included 31 hospitals across eight states, approximately 400 facility locations, 4,500 primary and specialty care physicians, 3,600 staffed beds, and a company-wide workforce of nearly 30,000 employees that provide care to more than two million patients annually.
Amann Burnett has successfully defended a so-called Preference Target Letter by explaining that its client has valid defenses (ordinary course, contemporaneous exchange for new value, subsequent value) defenses. The Trustee has “gone away”, hopefully for good as the applicable statute of limitations is fast approaching. A “preference” is defined by Section 547 of Title 11 of the United States Code (the “Bankruptcy Code”).
The case includes the following list of debtors:
| 24-90213 | Steward Health Care System LLC | May 06, 2024 |
| 24-90210 | SJ Medical Center, LLC | May 06, 2024 |
| 24-90211 | Downtown Houston Physician Hospital Organization | May 06, 2024 |
| 24-90212 | Steward Health Care Holdings LLC | May 06, 2024 |
| 24-90214 | Arizona Diagnostic & Surgical Center, Inc. | May 06, 2024 |
| 24-90215 | Beaumont Hospital Holdings, Inc. | May 06, 2024 |
| 24-90216 | Biltmore Surgery Center Holdings, Inc. | May 06, 2024 |
| 24-90217 | Biltmore Surgery Center, Inc. | May 06, 2024 |
| 24-90218 | Health Choice Louisiana, Inc. | May 06, 2024 |
| 24-90219 | Blackstone Medical Center, Inc. | May 06, 2024 |
| 24-90220 | Physician Group of Utah, Inc. | May 06, 2024 |
| 24-90221 | Steward PET Imaging, LLC | May 06, 2024 |
| 24-90222 | Steward Florida Holdings LLC | May 06, 2024 |
| 24-90223 | Blackstone Rehabilitation Hospital, Inc. | May 06, 2024 |
| 24-90224 | Health Choice Managed Care Solutions LLC | May 06, 2024 |
| 24-90225 | Boston Orthopedic Center, LLC | May 06, 2024 |
| 24-90226 | Podiatric Physicians Management of Arizona, Inc. | May 06, 2024 |
| 24-90227 | Health Choice Northern Arizona LLC | May 06, 2024 |
| 24-90228 | PP Transition, Inc. | May 06, 2024 |
| 24-90229 | Health Choice Preferred Accountable Care LLC | May 06, 2024 |
| 24-90230 | Boston Sports Medicine and Research Institute, LLC | May 06, 2024 |
| 24-90231 | PP Transition LP | May 06, 2024 |
| 24-90232 | Steward PGH, Inc. | May 06, 2024 |
| 24-90233 | Steward FMC, Inc. | May 06, 2024 |
| 24-90234 | Health Choice Preferred Louisiana ACO LLC | May 06, 2024 |
| 24-90235 | Quincy Medical Center, A Steward Family Hospital, Inc. | May 06, 2024 |
| 24-90236 | Brevard SHC Holdings LLC | May 06, 2024 |
| 24-90237 | Health Choice Preferred Louisiana Physician Association LLC | May 06, 2024 |
| 24-90238 | Steward Physician Contracting, Inc. | May 06, 2024 |
| 24-90239 | Health Choice Preferred Texas ACO – Alamo Region LLC | May 06, 2024 |
| 24-90240 | Steward Good Samaritan Medical Center, Inc. | May 06, 2024 |
| 24-90241 | Riverwoods ASC Holdco LLC | May 06, 2024 |
| 24-90242 | Brim Healthcare of Colorado, LLC | May 06, 2024 |
| 24-90243 | Steward Radiology Physicians of Arizona, Inc. | May 06, 2024 |
| 24-90244 | Health Choice Preferred Texas ACO – Gulf Coast Region LLC | May 06, 2024 |
| 24-90245 | Salt Lake Regional Medical Center, LP | May 06, 2024 |
| 24-90246 | Steward Good Samaritan Occupational Health Services, Inc. | May 06, 2024 |
| 24-90247 | Indigent Care Services of Northeast Louisiana, Inc. | May 06, 2024 |
| 24-90248 | Brim Healthcare of Texas, LLC | May 06, 2024 |
| 24-90249 | Steward Radiology Physicians of Florida, Inc. | May 06, 2024 |
| 24-90250 | Health Choice Preferred Texas Physician Association – Alamo Region LLC | May 06, 2024 |
| 24-90251 | Salt Lake Regional Physicians, Inc. | May 06, 2024 |
| 24-90252 | Jordan Valley Hospital Holdings, Inc. | May 06, 2024 |
| 24-90253 | Health Choice Preferred Texas Physician Association – Gulf Coast Region LLC | May 06, 2024 |
| 24-90254 | Steward Radiology Physicians of Massachusetts, Inc. | May 06, 2024 |
| 24-90255 | Steward Good Samaritan Radiation Oncology Center, Inc. | May 06, 2024 |
| 24-90256 | Seaboard Development LLC | May 06, 2024 |
| 24-90257 | Health Choice Utah Accountable Care LLC | May 06, 2024 |
| 24-90258 | Seaboard Development Port Arthur LLC | May 06, 2024 |
| 24-90259 | Steward Radiology Physicians of Pennsylvania, Inc. | May 06, 2024 |
| 24-90260 | Steward Health Care International LLC | May 06, 2024 |
| 24-90261 | Brim Holding Company, Inc. | May 06, 2024 |
| 24-90262 | HealthUtah Holdco LLC | May 06, 2024 |
| 24-90263 | Jordan Valley Medical Center, LP | May 06, 2024 |
| 24-90264 | Steward Rockledge Hospital, Inc. | May 06, 2024 |
| 24-90265 | Steward Health Care Network ACO Texas, Inc. | May 06, 2024 |
| 24-90266 | Brim Physicians Group of Colorado, LLC | May 06, 2024 |
| 24-90267 | SHC Youngstown Ohio Laboratory Services Company LLC | May 06, 2024 |
| 24-90268 | Steward SA FSED Holdings, Inc. | May 06, 2024 |
| 24-90269 | Legacy Trails Medical Center LLC | May 06, 2024 |
| 24-90270 | SHC Youngstown Ohio Outpatient Services LLC | May 06, 2024 |
| 24-90271 | Steward Health Care Network, Inc. | May 06, 2024 |
| 24-90272 | Steward Sebastian River Medical Center, Inc. | May 06, 2024 |
| 24-90273 | Heritage Technologies, LLC | May 06, 2024 |
| 24-90274 | SHC Youngstown Ohio PSC LLC | May 06, 2024 |
| 24-90275 | Southridge Plaza Holdings, Inc. | May 06, 2024 |
| 24-90276 | IASIS Capital Corporation | May 06, 2024 |
| 24-90277 | Mesa General Hospital, LP | May 06, 2024 |
| 24-90278 | Choice Care Clinic I, Inc. | May 06, 2024 |
| 24-90279 | Steward Health Care OZ Fund, Inc. | May 06, 2024 |
| 24-90280 | Southwest General Hospital, LP | May 06, 2024 |
| 24-90281 | IASIS Finance II LLC | May 06, 2024 |
| 24-90282 | Morton Hospital, A Steward Family Hospital, Inc. | May 06, 2024 |
| 24-90283 | Choice Care Clinic II, Inc. | May 06, 2024 |
| 24-90284 | St. Luke’s Behavioral Hospital, LP | May 06, 2024 |
| 24-90285 | IASIS Finance III LLC | May 06, 2024 |
| 24-90286 | Steward Health Choice, Inc. | May 06, 2024 |
| 24-90287 | Choice Care Clinic III, Inc. | May 06, 2024 |
| 24-90288 | Steward Sharon Regional Health System, Inc. | May 06, 2024 |
| 24-90289 | Mountain Point Holdings, LLC | May 06, 2024 |
| 24-90290 | IASIS Finance, Inc. | May 06, 2024 |
| 24-90291 | Choice Care Clinic of Louisiana, Inc. | May 06, 2024 |
| 24-90292 | Steward Special Projects LLC | May 06, 2024 |
| 24-90293 | Steward Healthcare Management Services LLC | May 06, 2024 |
| 24-90294 | St. Luke’s Medical Center, LP | May 06, 2024 |
| 24-90295 | IASIS Finance Texas Holdings, LLC | May 06, 2024 |
| 24-90296 | Steward St. Anne’s Hospital Corporation | May 06, 2024 |
| 24-90297 | Mountain Vista Medical Center, LP | May 06, 2024 |
| 24-90298 | Steward HH, Inc. | May 06, 2024 |
| 24-90299 | Choice Care Clinic of Utah, Inc. | May 06, 2024 |
| 24-90300 | Steward St. Elizabeth’s Medical Center of Boston, Inc. | May 06, 2024 |
| 24-90301 | IASIS Glenwood Regional Medical Center, LP | May 06, 2024 |
| 24-90302 | Steward Accountable Care Organization, Inc. | May 06, 2024 |
| 24-90303 | MT Transition LP | May 06, 2024 |
| 24-90304 | Steward Hillside Rehabilitation Hospital, Inc. | May 06, 2024 |
| 24-90305 | Steward St. Elizabeth’s Realty Corp. | May 06, 2024 |
| 24-90306 | Converse Medical Center LLC | May 06, 2024 |
| 24-90307 | Steward Anesthesiology Physicians of Florida, Inc. | May 06, 2024 |
| 24-90308 | Steward Texas Hospital Holdings LLC | May 06, 2024 |
| 24-90309 | Steward Holy Family Hospital, Inc. | May 06, 2024 |
| 24-90310 | Steward Anesthesiology Physicians of Massachusetts, Inc. | May 06, 2024 |
| 24-90311 | IASIS Healthcare Corporation | May 06, 2024 |
| 24-90312 | Steward Trumbull Memorial Hospital, Inc. | May 06, 2024 |
| 24-90313 | Nashoba Valley Medical Center, A Steward Family Hospital, Inc. | May 06, 2024 |
| 24-90314 | Steward Hospital Holdings LLC | May 06, 2024 |
| 24-90315 | Davis Hospital & Medical Center, LP | May 06, 2024 |
| 24-90316 | Steward TSC Investments LLC | May 06, 2024 |
| 24-90317 | IASIS Healthcare Holdings, Inc. | May 06, 2024 |
| 24-90318 | Davis Hospital Holdings, Inc. | May 06, 2024 |
| 24-90319 | IASIS Healthcare LLC | May 06, 2024 |
| 24-90320 | Steward Hospital Holdings Subsidiary One, Inc. | May 06, 2024 |
| 24-90321 | Steward Valley Regional Ventures, Inc. | May 06, 2024 |
| 24-90322 | IASIS Management Company | May 06, 2024 |
| 24-90323 | Steward West Ventures Co. | May 06, 2024 |
| 24-90324 | Davis Surgical Center Holdings, Inc. | May 06, 2024 |
| 24-90325 | IASIS Transco, Inc. | May 06, 2024 |
| 24-90326 | Steward Imaging & Radiology Holdings LLC | May 06, 2024 |
| 24-90327 | Stewardship Health, Inc. | May 06, 2024 |
| 24-90328 | Steward Anesthesiology Physicians of Pennsylvania, Inc. | May 06, 2024 |
| 24-90329 | New England Sinai Hospital, A Steward Family Hospital, Inc. | May 06, 2024 |
| 24-90330 | Stewardship Health Medical Group, Inc. | May 06, 2024 |
| 24-90331 | Steward Medicaid Care Network, Inc. | May 06, 2024 |
| 24-90332 | Steward ASC Holdings LLC | May 06, 2024 |
| 24-90333 | Stewardship Services Inc. | May 06, 2024 |
| 24-90334 | Odessa Fertility Lab, Inc. | May 06, 2024 |
| 24-90335 | The Medical Center of Southeast Texas, LP | May 06, 2024 |
| 24-90336 | Steward Carney Hospital, Inc. | May 06, 2024 |
| 24-90337 | Steward Medical Group Express Care, Inc. | May 06, 2024 |
| 24-90338 | TNC Transition LP | May 06, 2024 |
| 24-90339 | Steward CGH, Inc. | May 06, 2024 |
| 24-90340 | De Zavala Medical Center LLC | May 06, 2024 |
| 24-90341 | Steward Easton Hospital, Inc. | May 06, 2024 |
| 24-90342 | TRACO Investment Management LLC | May 06, 2024 |
| 24-90343 | Steward Emergency Physicians, Inc. | May 06, 2024 |
| 24-90344 | Glenwood Specialty Imaging, LLC | May 06, 2024 |
| 24-90345 | Utah Transcription Services, Inc. | May 06, 2024 |
| 24-90346 | Steward Emergency Physicians of Arizona, Inc. | May 06, 2024 |
| 24-90347 | HC Essential Co. | May 06, 2024 |
| 24-90348 | Odessa Regional Hospital, LP | May 06, 2024 |
| 24-90349 | Steward Emergency Physicians of Florida, Inc. | May 06, 2024 |
| 24-90350 | Health Choice Florida, Inc. | May 06, 2024 |
| 24-90351 | Steward Emergency Physicians of Pennsylvania, Inc. | May 06, 2024 |
| 24-90352 | OnSite Care, Inc. | May 06, 2024 |
| 24-90353 | Steward Emergency Physicians Ohio, Inc. | May 06, 2024 |
| 24-90354 | Steward Medical Group Pennsylvania Endoscopy LLC | May 06, 2024 |
| 24-90355 | Steward Employer Solutions LLC | May 06, 2024 |
| 24-90356 | Steward Fall River Management Care Services LLC | May 06, 2024 |
| 24-90357 | Steward Medical Holdings LLC | May 06, 2024 |
| 24-90358 | OnSite Care MSO, LLC | May 06, 2024 |
| 24-90359 | Steward Florida ALF LLC | May 06, 2024 |
| 24-90360 | Steward Medical Ventures, Inc. | May 06, 2024 |
| 24-90361 | Steward Florida ASC LLC | May 06, 2024 |
| 24-90362 | Steward Medical Group, Inc. | May 06, 2024 |
| 24-90363 | Steward Melbourne Hospital, Inc. | May 06, 2024 |
| 24-90364 | Steward New England Initiatives, Inc. | May 06, 2024 |
| 24-90365 | Permian Basin Clinical Services, Inc. | May 06, 2024 |
| 24-90366 | Steward Norwood Hospital, Inc. | May 06, 2024 |
| 24-90367 | Steward NSMC, Inc. | May 06, 2024 |
| 24-90368 | Steward Ohio Holdings LLC | May 06, 2024 |
| 24-90369 | Steward Operations Holdings LLC | May 06, 2024 |
| 24-90370 | Steward Pathology Physicians of Massachusetts, Inc. | May 06, 2024 |
| 24-90371 | Permian Premier Health Services, Inc. | May 06, 2024 |
| 24-90372 | Steward Pennsylvania Holdings LLC | May 06, 2024 |
| 24-90373 | Physician Group of Arizona, Inc. | May 06, 2024 |
| 24-90374 | Physician Group of Arkansas, Inc. | May 06, 2024 |
| 24-90375 | Physician Group of Florida, Inc. | May 06, 2024 |
| 24-90376 | Physician Group of Louisiana, Inc. | May 06, 2024 |
