Under Chapter 9 regulations, lawsuits against the county are stayed until the county recoveries from bankruptcy. Birmingham had asked a bankruptcy judge to remove that freeze so it could sue the county in a state court. The city has argued the county is required by Alabama law to provide healthcare to indigent patients.
The county commission voted to stop inpatient and emergency room care at Cooper Green in August and instead offer services for indigent patients through a network of outpatient clinics. Inpatient care would be outsourced to surrounding hospitals, and the county would reimburse those hospitals for the cost.
U.S. bankruptcy Judge Thomas Bennett said the state law does not specify how the county must provide indigent care. He indicated the freeze that prevents lawsuits from being filed against the county would remain in place, according to the report.
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