IN RE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD

No. 18-2228, No. 19-1202.

953 F.3d 154 (2020)

IN RE: The FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, as Representative for the Commonwealth of Puerto Rico; the Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Highways and Transportation Authority; the Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Electric Power Authority (PREPA); The Financial Oversight and Management Board for Puerto Rico, as Representative for The Puerto Rico Sales Tax Financing Corporation, a/k/a Cofina; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, Debtors. Atlantic Medical Center, Inc.; Camuy Health Services, Inc.; Hospital General Castañer, Inc.; Ciales Primary Health Care Services, Inc.; Costa Salud, Inc.; Corporación De Serv. Médicos Primarios y Preventión De Hatillo, Inc.; Centro De Salud De Lares, Inc.; Centro De Salud Familiar Dr. Julio Palmieri Ferri, Inc.; Centro De Servicios Primarios De Salud De Patillas, Inc.; Rio Grande Community Health Center, Inc., Plaintiffs, Appellants, Corporación De Servicios Integrales De Salud Del Area De Barranquitas, Comerío, Corozal, Naranjito y Orocovis, Plaintiff, v. The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico, Defendant, Appellee. In re: The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico; the Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Highways and Transportation Authority; the Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Electric Power Authority (PREPA); The Financial Oversight and Management Board for Puerto Rico, as Representative for The Puerto Rico Sales Tax Financing Corporation, a/k/a Cofina; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, Debtors. Atlantic Medical Center, Inc.; Camuy Health Services, Inc.; Hospital General Castañer, Inc.; Ciales Primary Health Care Services, Inc.; Costa Salud, Inc.; Corporación De Serv. Médicos Primarios y Prevención De Hatillo, Inc.; Centro De Salud De Lares, Inc.; Centro De Salud Familiar Dr. Julio Palmieri Ferri, Inc.; Centro De Servicios Primarios De Salud De Patillas, Inc.; Rio Grande Community Health Center, Inc., Plaintiffs, Corporación De Servicios Integrales De Salud Del Area De Barranquitas, Comerío, Corozal, Naranjito y Orocovis, Plaintiff, Appellant, v. The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico, Defendant, Appellee.

United States Court of Appeals, First Circuit.

March 23, 2020.


Attorney(s) appearing for the Case

Nicole M. Bacon , Washington, DC, with whom James L. Feldesman , Washington, DC, Khatereh S. Ghiladi , and Feldesman Tucker Leifer Fidell LLP were on brief, for appellants Atlantic Medical Center, Inc.; Camuy Health Services, Inc.; Hospital General Castañer, Inc.; Ciales Primary Health Care Services, Inc.; Costa Salud, Inc.; Corporación de Serv. Médicos Primarios y Prevención de Hatillo, Inc.; Centro de Salud de Lares, Inc.; Centro de Salud Familiar Dr. Julio Palmieri Ferri, Inc.; Centro de Servicios Primarios de Salud de Patillas, Inc.; Rio Grande Community Health Center, Inc.

John E. Mudd , with whom Law Offices of John E. Mudd was on brief, for appellant Corporación de Servicios Integrales de Salud del Area de Barranquitas, Comerío, Corozal, Naranjito y Orocovis.

Julia D. Alonzo , New York, NY, with whom Timothy W. Mungovan , John E. Roberts , Boston, MA, Martin J. Bienenstock , Stephen L. Ratner , Mark D. Harris , Jeffrey W. Levitan , New York, NY, and Proskauer Rose LLP were on brief, for appellee The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico.

Before Torruella, Lipez, and Thompson, Circuit Judges.


Appellants in these consolidated cases are two groups of federally funded community health centers that have been engaged in litigation for nearly two decades in an effort to collect payments from the Commonwealth of Puerto Rico pursuant to federal Medicaid law. Amidst that ongoing litigation, Congress enacted PROMESA to address the Commonwealth...

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