Williamston, N.C.-based Martin General Hospital's bankruptcy case has drawn the attention of Attorney General Josh Stein's office due to medical records, NewsBreak reported Nov. 19.
On Nov. 15, Special Deputy Attorney General Katherine McGraw, representing the state Department of Health and Human Services, filed an objection to a motion by federal bankruptcy trustee Don Beskrone.
Mr. Beskrone oversees the MGH case in federal bankruptcy court in Delaware, and the NCDHHS oversees health and human-related services and is responsible for medical records oversight.
The county's legal team has been in contact with the attorney general's office, providing information on medical record status and patient difficulties during the bankruptcy process.
Mr. Beskrone's motion sought court permission to dispose of a portion of the 25,000 patient records at MGH and to engage Sharecare, a digital health company, for storage. Ms. McGraw's objection, backed by NCDHHS objections, cites laws and the bankruptcy code. The objections emphasize specific requirements for handling medical records, including notification steps and approval from the overseeing agency, the report said.
Ms. McGraw highlights the availability of $1 million for medical record maintenance. Concerning relocation, the state objected, invoking the Health Insurance Portability and Accountability Act of 1996. HIPAA governs record maintenance, and the state argues the debtor is covered by its standards.
A tentative hearing is set for Nov. 28.