Unsecured Creditors' Comm. v. Ind. Family & Soc.Servs. Admin., No. 14-2546 (7th Cir. 2015)
Annotate this CaseThe Hospital had to pay a Hospital Assessment Fee (HAF) as part of an Indiana program designed to increase Medicaid reimbursements to eligible hospitals. After it failed to pay its HAF, the Indiana Family and Social Services Administration (FSSA) began withholding Medicaid reimbursements. On June 19, 2012, the Hospital filed for Chapter 11 bankruptcy. FSSA continued to withhold reimbursements in satisfaction of its HAF debt. The Hospital filed an adversary complaint against FSSA claiming that the HAF was a pre-petition claim subject to the automatic stay. The bankruptcy court agreed, ruling the HAF was an “act to collect, assess, or recover a claim against the debtor that arose before the commencement of the case,” 11 U.S.C. 362(a)(6), and was subject to the stay. FSSA was ordered to repay the full amount it had withheld. The district court reversed as to the HAF for fiscal year 2013. The Seventh Circuit reversed, finding that the 2013 HAF, like the 2012 HAF, is a pre-petition claim subject to the automatic stay. FSSA was aware of its claims against the Hospital—for both fiscal years 2012 and 2013—well before it filed for bankruptcy
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.