Does a hospital that filed bankruptcy have to pay mistreatment settlements ?

August 22, 2014

Question

My dad was mistreated by a hospital in early 2008 and later that year the hospital filed bankruptcy. A settlement was offered to my dad of around 200k but only around 21K was paid out. I was wondering why and how was that determined.

Answer

Once bankruptcy is filed, all malpractice lawsuits against the hospital are "stayed". The bankruptcy trustee may have limited funds from which to pay existing claims. Maybe the terms of the settlement provided for installment payments.... You should really be asking the attorney who obtained the settlement for your father; he/she should have the answer to your question.

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