Medical equipment company files objection to Trumbull, Hillside deal

WARREN, Ohio (WKBN) – Wednesday was the deadline for anyone against Insight Health taking over Trumbull Regional Medical Center and Hillside Rehabilitation Hospital to file an objection with the bankruptcy court.

There was one such objection filed. It was from CareFusion Solutions’ parent company Becton, Dickinson & Company (BD), a company that provides medical equipment and services to hospitals — in this case, an automated medicine dispensing system called Pyxis. It’s objecting because it wants Insight to honor its previous agreements with Steward Health in regard to billing or make Steward pay up.

Carefusion said that the Pyxis System is not included in the Trumbull and Hillside purchase assets being sold but is a critical component to operations, in violation of its Master Agreement with Steward. It wants the right to negotiate a deal with Insight, overriding any stay the court has imposed.

BD says it is owed $11 million for systems delivered to 42 Steward Health facilities and is behind $1.8 million in payments.

“The Debtors and their professionals maintain the position that the Pyxis System is subject to the Master Lease, acknowledging that these systems on site at the two hospitals being sold are owned by BD, leased to Steward Health, and not subject to the sale procedures…the Debtors are obligated to pay for their use of the Pyxis Systems pursuant to the Master Lease,” the company wrote in its filing.

Carefusion said that no sale should be finalized and no closing should occur unless Steward pays for the use of the equipment.

Steward Health filed for bankruptcy in May, putting the system’s 400 facilities, including 31 hospitals, across the U.S. in jeopardy, including Trumbull Regional Medical Center, Hillside Rehabilitation Hospital and Sharon Regional Medical Center.

A buyer has been lined up for Sharon Regional with Meadville Medical Center .

Insight Health assumed operations at Trumbull and Hillside as Steward Health and Medical Properties Trust finalize ownership of the hospitals.

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