IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS...

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE SOUTHERN DISTRICT OF INDIANA

INDIANAPOLIS DIVISION

IN RE: )

)

MONROE HOSPITAL, LLC ) Case No. 14-07417-JMC

) Chapter 11

Debtor. )

CREDITOR NORTHERN INDIANA EMERGENCY PHYSICIANS, LLP’S MOTION TO

RECOGNIZE AND COMPEL PAYMENT OF ADMINISTRATIVE EXPENSES

COMES NOW, Northern Indiana Emergency Physicians, LLP, a creditor in the above-

captioned matter, by counsel, and hereby files it Motion to Recognize and Compel Payment of

Administrative Expenses (“Motion”), and in support thereof, states as follows:

1. This Court has jurisdiction over the Motion pursuant to 28 U.S.C. §§157 and

1334. This is a core proceeding pursuant to 28 U.S.C. §157(b).

2. On November 26, 2013, Monroe Hospital (“Debtor”) and Northern Indiana

Emergency Physicians, LLP (“Creditor”) entered into an Agreement for Emergency Department

Management Services (the “Agreement”), wherein Debtor engaged Creditor to provide physician

staffing, management and consulting services to the Debtor (the “Emergency Services”). A true

and accurate copy of the Agreement is attached hereto, marked as Exhibit “A”, and made a part

hereof.

3. Pursuant to the Agreement, Debtor agreed to pay to Creditor a monthly payment

based upon the number of billable services provided.

4. On August 8, 2014, Debtor filed its Voluntary Petition for Relief pursuant to Title

11 of the United States Bankruptcy Code (the “Petition Date”).

Case 14-07417-JMC-11 Doc 165 Filed 10/14/14 EOD 10/14/14 11:11:39 Pg 1 of 25

5. Debtor continues to operate its business and manage its assets as debtor-in-

possession.

6. On the Petition Date, Debtor owed Creditor $72,402.22 for Emergency Services

provided pre-petition.

7. Post-petition, Creditor has continued to provide Debtor with Emergency Services

in accordance with the Agreement. As a result, there has been a substantial and continuing

benefit to the Debtor’s estate.

8. Debtor has failed and refused to pay Creditor the full amounts due for Emergency

Services provided to Debtor post-petition.

9. Debtor is in default under the terms of the Agreement by failing to pay Creditor

for services rendered both pre-petition and post-petition.

10. As of October 13, 2014, the total amount due from Debtor to Creditor for the

Emergency Services provided post-petition is $92,845.84.1 True and accurate copies of the

invoices are attached hereto, collectively marked as Exhibit “B”, and incorporated herein by

reference.

11. Pursuant to 11 U.S.C. §503(b)(1)(A), Creditor is entitled to the allowance and

immediate payment of the sum of $92,845.84 as an administrative expense for Emergency

Services provided post-petition.

12. Creditor provides critical Emergency Services to the Debtor which allows Debtor

to continue to operate.

13. The Emergency Services provided by Creditor were, and continue to be,

necessary to, and in the ordinary course of, Debtor’s operations.

1Creditor has received one partial payment for post-petition services in the amount of $33,723.92 relating to invoice

19501. Invoice 19501 is in the amount of $45,454.00 for the August 2014 fee, $10,263.81 was due for pre-petition

services and $35,190.19 for post-petition services (calculated on a per diem basis).


14. Creditor respectfully requests that this Court:

a. allow Creditor an administrative claim in the amount of

$92,845.84, for services provided post-petition under the terms of

the Agreement;

b. direct Debtor to pay $92,845.84 to Creditor within ten (10)

days from the date of this Motion; and

c. direct Debtor to make prompt monthly payments to Creditor for all

amounts due for future post-petition Emergency Services provided for in

accordance with the terms of the Agreement.

15. In the alternative, in the event Debtor asserts insufficient funds or the inability to

pay administrative expense claims incurred in the ordinary course of Debtor’s operations as said

expenses become due, Creditor requests that Debtor be barred from paying any administrative

expense claims, including payment to Ordinary Course Professionals (as such is defined in the

September 2, 2014 Order of this Court), until all administrative expense claims can be satisfied

in full.

WHEREFORE, Creditor Northern Indiana Emergency Physicians, LLP respectfully

requests that the Court enter an order granting Creditor’s Motion to Recognize and Compel

Payment of Administrative Expenses, directing Debtor to make payment to Creditor as set forth

herein, and for all other just and proper relief in the premises.

/s/ Patricia E. Primmer

Patricia E. Primmer (6505-71)

Jennifer L. ElBenni (27825-71)

Attorneys for Creditor Northern Indiana Emergency

Physicians, LLP

MAY • OBERFELL • LORBER 4100 Edison Lakes Parkway, Suite 100

Mishawaka, IN 46545

Telephone: (574) 243-4100

Facsimile: (574) 232-9789


CERTIFICATE OF SERVICE

I hereby certify that on the 14th day of October, 2014, I electronically filed a copy of the

above and foregoing document with the Clerk of the Court using the CM/ECF system which sent

notification of such filing to the following: James R. Irving, Esq. and Thomas C. Scherer, Esq.,

and I hereby certify that I have mailed by United States Postal Service the document to the

following CM/ECF participants: N/A.

Patricia E. Primmer

F:\Clients\N0308\14001\Motion to Recognize and Compel Payment of Administrative Expenses.docx 10/14/14


AGREEMENT FOR EMERGENCY DEPARTMENT MANAGEMENT SERVICES

THIS IS AN AGREEMENT FOR EMERGENCY DEPARTMENT MANAGEMENT SERVICES,

dated November~, 2013, by and between Monroe Hospital, LLC, Bloomington, Indiana ("Hospital"), and

Northern Indiana Emergency Physicians, LLP, a limited liability partnership authorized to provide

professional medical services in the State of Indiana, ofTraverse City, Michigan ("Partnership").

A. BACKGROUND

1. Partnership is in the business of providing physician staffmg, management and consulting

services; and

2. Hospital desires to retain the services of Partnership to continuously staff and provide

management oversight of the Hospital Emergency Department ("Department") upon the tenns and

conditions set forth herein.

B. AGREEMENT

In consideration of the terms and conditions set tOrth therein, together with other good and valuable

consideration, the receipt ofwhich is hereby acknowledged, the parties agree as follows:

1. Engagement. Hospital hereby engages and Partnership accepts the engagement to provide appropriate physician staffing, management and consulting services (the "ED Service") to the Department on a fee-for-service basis.

2. Status of Partnership and Physicians. The parties aclmowledge that the Partnership and the physicians provided by it are independent contractors as to the Hospital for the furnishing of the ED Service ("Physician" or "Physicians"). Physicians shall not be deemed to be employees of the HOspital and shall not be eligible for any employment benefit programs of the Hospital. The physicians and other personnel supplied by the Hospital shall not be deemed to be employees of the Partnership and shall not be eligible for any benefit programs of the Partnership. Except to the extent that physician practice and professional conduct are regulated by the Hospital Medical Staff ("Medical Staff'), Physicians shall not be under the direction or supervision of the Hospital in the performance of their medical services.

3. Term. This Agreement shall have an initial term of three (3) years beginning on February 1, 2014, at 7:01 am, or at some other mutually agreeable time, and shall automatically continue for successive one (1) year terms unless sooner terminated as provided herein.

Exhibit A


Northern Indiana EMERGENCY PHYSICIANS, LLP

Northern Indiana Emergency Physicians, LLP PO BOX 674579 DETROIT MICHIGAN 48267·4579

BILL TO

Monroe Hospital 4011 SMonroe Medical Park Blvd. Bloomington IN 47403

DESCRIPTION

Jun 2014 - Cost of Services

INVOICE DATE &.. "

................ " .' ;:\~: - ~.' . ~_.. ""

INVOICE 18023

CLIENT ID 185004

CLIENT CODE BLMO

TERMS Upon Receipt

DUE DATE 6/10/2014 AMOUNT DUE $16,267.00

ATTACHMENTS

UNIT RATE AMOUNT 'P 1.00 $16,267.00 $16,267.00 NV·

TOTAL DUE $16,267.00 Comments

ACH Instructions: Account number: 1852793601 Routing number: 072000096

Exhibit B

Thank you for your business and prompt payment.

If you have any questions about this invoice, please contact Pat O'Connor, 800-632-3496, ext. 3156, [email protected]

Page 1 of 1



Northern Indiana Emergency Physicians, LLP PO BOX 674579 DETROIT MICHIGAN 48267-4579

DATE

INVOICE

CLIENT 10

CLIENT CODE

TERMS

DUE DATE

AMOUNT DUE

INVOICE ~~ f'~~,,, ~vl~~~? ,~ ~_.-.... _ _ ~ ._. "r'~, __..:'~ 'Ij~_:

18003

185004

BLMO

Upon Receipt

6/30/2014

$197.55

BILL TO AITACHMENTS


TOTAL DUE $197.55 Comments ======= ACH Instructions: Account number: 1852793601 Routing number: 072000096


If you have any questions about this Invoice, please contact Pat O'Connor, 800-632-3496, ext. 3156, [email protected]

Page 1 of 1




BILL TO


DESCRIPTION

Jun 2014 . Additional Coverage· Physician

INVOICE

18522

185004

BLMO

Upon Receipt

7/30/2014

$197.55

DATE

INVOICE

CLIENT ID

CLIENT CODE

TERMS

DUE DATE

AMOUNT DUE

ATTACHMENTS

UNIT RATE AMOUNT

1.00 $197.55 $197.55

TOTAL DUE $197.55 Comments




Page 1 of 1




BILL TO


DESCRIPTION

Jul 2014 - Admin Fee Chart

INVOICE 1iiIfJ~~·~~., ... -. -".~ .. : .... _.'. '" _ _ _ '. ~...:.•.-1.;,....r ~ .-.-..

19209

185004

BLMO

Upon Receipt

8/13/2014

$45,454.00

DATE

INVOICE

CLIENT ID

CLIENT CODE

TERMS

DUE DATE

AMOUNT DUE

ATTACHMENTS

UNIT RATE AMOUNT

1.00 $45,454.00 $45,454.00




If you have any questions about this invoice, please contact Pat O'Connor, 800·632·3496, ext. 3156, [email protected]

Page 1 of 1


INVOICE DATE

INVOICE

Northern Indiana Emergency Physicians, LLP PO BOX 674579

CLIENT ID

CLIENT CODE DETROIT MICHIGAN 48267-4579 TERMS

DUE DATE

AMOUNT DUE

19501

185004

BLMO

Upon Receipt

9/5/2014

$45,454.00

BILL TO ATIACHMENTS


TOTAL DUE $45,454.00 Comments ====== ACH Instructions: Account number: 1852793601 Routing number: 072000096



Page 1 of 1




BILL TO


DESCRIPTION

Aug 2014 . Additional Coverage - Physician

INVOICE DATE

INVOICE

CLIENT ID

CLIENT CODE

TERMS

DUE DATE

AMOUNT DUE

19711 . 185004

BLMO

10th of Month

9/25/2014

$98.78

AITACHMENTS

UNIT RATE AMOUNT

$197.55 $98.780.50

Comments TOTAL DUE $98.78 ======

ACH Instructions: Account number: Routing number: 072000096

1852793601



Page 1 of 1


19381



BILL TO


DESCRIPTION

Sep 2014· Admin Fee Chart

INVOICE ~"'l ''--10 ,,- ..~; """',//1: , • DATE .- 1. :.:.~_~

INVOICE

CLiENTID 185004

CLIENT CODE BLMO

TERMS Upon Receipt

DUE DATE 9/10/2014

AMOUNT DUE

ATTACHMENTS

$45,454.00

UNIT

1.00

RATE

$45,454.00

AMOUNT

$45,454.00



Thank you for your business and prompt payment


Page 1 of 1




BILL TO


DESCRIPTION

Sep 2014 - Additional Coverage - Physician

INVOICE DATE

INVOICE

CLIENT ID

CLIENT CODE

TERMS

DUE DATE

AMOUNT DUE

19968

185004

BLMO

Upon Receipt

10/30/2014

$395.10

ATTACHMENTS

UNIT RATE AMOUNT

2.00 $197.55 $395.10

,,"......

,. t .. ,',. ~

TOTAL DUE $395.10 Comments



If you have any questions about this invoice, please contact Pat O'Connor, 800·632·3496, ext. 3156, [email protected]

Page 1 of 1


Northern Indiana EMERGENCY PHYSICIANS. LLP


BILL TO


DESCRIPTION

DATE

INVOICE

CLiENTID

CLIENT CODE

TERMS

DUE DATE

AMOUNT DUE

ATTACHMENTS

INVOICE

19872

185004

BLMO

Upon Receipt

10/8/2014

$45,454.00

UNIT RATE AMOUNT

Oct 2014 - Cost of Services 1.00 $45,454.00 $45,454.00




If you have any questions about this Invoice, please contact Pat O'Connor, 800-632-3496, ext. 3156, ECIAccountsReceivable@ECIHP,com

Page 1 of 1


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