In Re Banes

355 B.R. 532, 57 Collier Bankr. Cas. 2d 190, 2006 Bankr. LEXIS 3194, 2006 WL 3333805
CourtUnited States Bankruptcy Court, M.D. North Carolina
DecidedNovember 16, 2006
Docket19-80026
StatusPublished
Cited by6 cases

This text of 355 B.R. 532 (In Re Banes) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Banes, 355 B.R. 532, 57 Collier Bankr. Cas. 2d 190, 2006 Bankr. LEXIS 3194, 2006 WL 3333805 (N.C. 2006).

Opinion

ORDER AND OPINION

CATHARINE R. CARRUTHERS, Bankruptcy Judge.

This matter came before the Court for hearing on November 2, 2006 upon the Bankruptcy Administrator’s Motion for Appointment of a Patient Care Ombudsmen filed on October 24, 2006. At the hearing, William Yaeger appeared on behalf of the Debtor, Stephanie Osborne-Rodgers appeared as Attorney for the Chapter 7 Trustee, and Sarah Bruce appeared for the Bankruptcy Administrator. Based upon a review of the Motion and the evidence presented, this court makes the following findings of fact and conclusions of law:

Ann C. Banes, D.D.S., P.L.L.C. (the “Debtor”) filed a petition under Chapter 7 of the Bankruptcy Code on October 17, 2006. The debtor is a dental practice. At the hearing, the Debtor’s attorney revealed that the Debtor’s practice is now defunct and the Debtor has no active patients. The Bankruptcy Administrator brought this motion to determine whether the Debtor’s dental practice is a “health care business,” as defined by 11 U.S.C. § 101(27A). If the Debtor is a health care business, this court would be required to appoint a patient care ombudsman within thirty days to monitor the quality of patient care and represent the interest of the Debtor’s patients, unless the court found that such an appointment was not necessary under the specific facts of the case. 11 U.S.C. § 333.

Section 101(27A) provides that a “health care business” is:

(A) ... any public or private entity (without regard to whether that entity is organized for profit or not for profit) that is primarily engaged in offering to the general public facilities and services for—
(i) the diagnosis or treatment of injury, deformity, or disease; and
(ii) surgical, drug treatment, psychiatric, or obstetric care; and
*534 (B) includes—
(i) any—
(I) general or specialized hospital;
(II) ancillary ambulatory, emergency, or surgical treatment facility;
(III) hospice;
(IV) home health agency; and
(V) other health care institution that is similar to an entity referred to in subclause (I), (II), (III), or (IV); and
(ii) any long-term care facility, including any—
(I) skilled nursing facility;
(II) intermediate care facility;
(III) assisted living facility;
(IV) home for the aged;
(V) domiciliary care facility; and
(VI) health care institution that is related to a facility referred to in sub-clause (I), (II), (III), (IV), or (V) if that institution is primarily engaged in offering room, board, laundry, or personal assistance with activities of daily living and incidentals to activities of daily living.

Because this is a new provision under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPC-PA”), there is a scarcity of authority addressing its meaning and application. After an examination of the statute, this court holds that a dental practice was not intended to be included within definition, and that even if it is included under the definition of health care business, a patient care ombudsman is not required under the facts of this case.

An inquiry into the meaning of “health care business” under § 101(27A) should start with the plain language of the definition. Statutes are construed according to their plain language unless there is apparent legislative intent to the contrary. In re Abdul Muhaimin, 343 B.R. 159, 167 (Bankr.D.Md.2006) (quoting Williams v. U.S. Merit Systems Protection Bd., 15 F.3d 46, 49 (4th Cir.1994)). Congress utilized the conjunctive “and” to connect all sections of § 101(27A). The choice of the word “and” in statutory language should generally be given its ordinary conjunctive meaning. See, e.g., In re Abdul Muhaimin, 343 B.R. at 167; Hillman v. Internal Revenue Service, 263 F.3d 338, 342 (4th Cir.2001). Two narrow exceptions to the plain meaning rule of the conjunctive “and” have been delineated. Hillman, 263 F.3d at 342. The first exception occurs when the application of the plain language of the statute produces a result that is “demonstrably at odds with clearly expressed congressional intent.” Id.; see also In re Abdul Muhaimin, 343 B.R. at 167. The second exception applies when the plain language of the statute results in an absurd outcome that shocks the general moral or common sense. Hillman, 263 F.3d at 342. Here, the result of applying the conjunctive “and,” as it is written in the plain language of the statute, would be to restrict the definition of health care business so that not every health care provider’s bankruptcy would require the appointment of a health care ombudsman. There is no indication that Congress did not intend this result, nor is it an absurd outcome. Therefore, the conjunctive “and” must be read into the statute as it is plainly written.

Because every section of this statute is connected by the conjunctive, a health care business must meet the requirements of every subsection to require the appointment of an ombudsman. First, to be covered under § 101(27A)(A), a health care business must be primarily engaged in offering services to the public for the purposes of both “diagnosis or treatment of injury, deformity, or disease” under subsection (A)(i), and “surgical, drug *535 treatment, psychiatric, or obstetric care” under subsection (A)(ii). A dental practice may meet the provisions of sections (A)(i) and (A)(ii) if it treats injury and disease and provides surgical treatment, and is generally accessible to members of the public seeking dental care. At the hearing, the Bankruptcy Administrator represented that the Debtor is involved in a specialty that involves surgical treatment, which would likely bring it under the definition of § 101(27A)(A).

Subsection (B) is also connected to subsection (A) with the conjunctive “and,” which means that the Debtor’s dental practice must also fit within the categories of health care businesses described in § 10 l(27A)(B)(i)(D-(V) or (B)(ii)(D-(VD to be considered a health care business. The only other court to analyze this statutory section described the type of health care businesses intended to fall under § 101(27A)(B) as those that involved “direct and ongoing contact with patients” that provided patients with “shelter and sustenance in addition to medical treatment.” In re 7-Hills Radiology, LLC, 350 B.R. 902, 904 (Bankr.D.Nev.2006).

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355 B.R. 532, 57 Collier Bankr. Cas. 2d 190, 2006 Bankr. LEXIS 3194, 2006 WL 3333805, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-banes-ncmb-2006.