Issues
- A General Acute Care Hospital was in payment default under its agreements with the EHR Provider
- The EHR Provider agreed to the debt repayment plan proposed by the Hospital, including daily and advance payments
- After the Hospital filed for bankruptcy, the transfers made to the EHR Provider by the Debtor during the Preference Period were questioned
Approach
- HMP was engaged to provide an opinion on whether the transfers made by the Debtor to the EHR Provider were consistent with industry norms and practices
- HMP reviewed all agreements, communication concerning the workout process and transfers between the Parties
- Compared terms of the Forbearance Agreement to those of similarly situated parties
Results
- HMP opined that all transfers during the Preference Period were made in the normal course of business and were consistent with industry norms
- Case settled favorably out of court