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Steward Health Care System LLC is facing another legal hurdle as its insurance affiliate, TRACO International Group, has voiced objections over legal fees incurred by a patient care ombudsman. TRACO contends that certain fees charged by the ombudsman’s advisers, specifically SAK Healthcare and Greenberg Traurig LLP, are unwarranted. These professional and administrative fees amount to over $1.6 million and TRACO’s position is that they should not receive court approval.
At the heart of the issue is TRACO’s assertion that Steward is administratively insolvent. This claim has been submitted in a recent objection filed with the US Bankruptcy Court for the Southern District of Texas. This situation forms part of broader litigation between TRACO and Steward, initiated in December, aiming to reclaim over $170 million that TRACO asserts are unlawfully included in Steward’s bankruptcy assets.
The case unfolds amidst ongoing legal disputes, highlighting TRACO’s efforts to recover significant financial assets that they argue are rightfully theirs. The ongoing litigation presents substantial implications for both parties. For more details, you can access the original report by Bloomberg Law.
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