EX PARTE Debtor Application ex parte · Declaration of Kevin E. Cook, CPA (the “Declaration2”) attached as Exhibit A here and to the initial retention application. See ECF No

1 LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A.

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA

Miami Division www.flsb.uscourts.gov

In re: MIAMI INTERNATIONAL MEDICAL CENTER, LLC1 Case No. 18-12741-LMI d/b/a THE MIAMI MEDICAL CENTER, Chapter 11 Debtor. /

DEBTOR’S EX PARTE APPLICATION FOR AN ORDER EXPANDING THE SCOPE OF EMPLOYMENT OF KEVIN E. COOK, CPA AND

BKD, LLP AS LIMITED PURPOSE ACCOUNTANTS

Miami International Medical Center, LLC d/b/a The Miami Medical Center (the

“Debtor”), by and through undersigned counsel, hereby submits this application (the

“Application”) seeking entry of an order of the Court on an ex parte basis, pursuant to §§327(a)

and 328(a) of Title 11 of the United States Code, Rules 2014(a) and 2016 and Rules 2014-1 and

2016-1 of the Local Rules for the United States Bankruptcy Court for the Southern District of

Florida, authorizing the employment and retention of Kevin E. Cook, CPA and BKD, LLP

(collectively, “BKD”) as limited purpose accountants for the Debtor. In support of the

Application, the Debtor respectfully represents as follows:

I. Jurisdiction and Venue

1. This Court has jurisdiction over this Motion pursuant to 28 U.S.C. §§ 157 and

1334. This is a core proceeding pursuant to 28 U.S.C. § 157.

2. Venue is proper in this District pursuant to 28 U.S.C. §§ 1408 and 1409.

3. The bases for the relief requested herein are sections 327(a), 328(a) and 330 of

title 11 of the United States Code (the “Bankruptcy Code”), Rules 2014(a) and 2016 of the

1The Debtor’s current mailing address is 5959 NW 7 St, Miami, FL 33126 and its EIN ends 4362.

Case 18-12741-LMI Doc 352 Filed 09/27/18 Page 1 of 20



Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) and Rule 2014-1 and 2016-1

of the Local Rules for the United States Bankruptcy Court for the Southern District of Florida

(the “Local Rules”).

II. Background

4. On March 9, 2018 (the “Petition Date”), the Debtor filed a voluntary petition

under Chapter 11 of the United States Bankruptcy Code.

5. The Debtor is operating its business and managing its affairs as a debtor in

possession pursuant to 11 U.S.C. §§ 1107(a) and 1108.

6. The Debtor is a regional acute care hospital that provided a limited suite of

medical services from its opening in February 2016 until it voluntarily requested conversion of

its operating license to inactive status from the State of Florida Agency for Health Care

Administration (AHCA) in October 2017. Since its shutdown in October 2017, the Debtor has

not had any patients under its care.

7. No trustee, examiner, or statutory committee has been appointed.

III. Relief Requested

8. The Debtor has employed BKD as limited purpose accountants in this Chapter 11

case to assist it in preparing the 2017 Tax Return and K-1’s. See ECF No. 146. The Debtor has

selected BKD because of the complexity in this matter and BKD’s historical knowledge in this

matter.

9. The Debtor seeks to expand the employment so that BKD can prepare the No

Utilization Cost Reports for the period ended December 31, 2016 and December 31, 2017.

10. To the best of the Debtor’s knowledge, the partners, accountants and associates of

BKD do not have any connection with, or any interest adverse to, the Debtor, its creditors, or any




other party in interest, or its respective attorneys and accountants, except as set forth in the

Declaration of Kevin E. Cook, CPA (the “Declaration2”) attached as Exhibit A here and to the

initial retention application. See ECF No. 38.

11. Based upon the Declaration, the Debtor submits that BKD is a “disinterested

person” as such term in defined in Bankruptcy Code section 101(14), as modified by Bankruptcy

Code 1107(b).

12. The Debtor seeks Court authorization to pay BKD up to $2,500 per tax year upon

completion of the No Utilization Cost Reports totaling not more than $5,000, absent further

Court Order.

13. BKD received $8,000 from the Debtor on March 8, 2018 in the ordinary course of

the Debtor’s business with BKD and with its engagement letter with BKD for pre-bankruptcy

services.

14. Pursuant to Local Rule 2014-1(A), a copy of the executed Legal Representation

Agreement is attached as Exhibit B.

Basis for Relief Requested

15. Pursuant to this Application, the Debtor seeks entry of an order authorizing the

employment and retention of BKD as limited purpose accountants for the Debtor effective as of

the Petition Date, pursuant to Bankruptcy Code sections 327(a) and 330, Bankruptcy Rules

2014(a) and 2016 and Local Rules 2014-1 and 2016-1. Pursuant to Bankruptcy Code section

328(a), the Debtor further requests that the Court approve the retention of BKD under a general

retainer, as its limited purpose accountants, in accordance with BKD’s normal hourly rates not to

exceed $2,500 per year for a total fee up to $5,000 in effect at the time services are rendered and

normal reimbursement policies. 2 Dated January 5, 2016 and made in connection with the 2016 chapter 11 proceedings.




Authority for Relief Requested

16. The Debtor seeks retention of BKD as its limited purpose accountants pursuant to

Bankruptcy Code section 327(a), which provides that a debtor, subject to Court approval:

[M]ay employ one or more attorneys, accountants, appraisers, auctioneers, or other professional persons, that do not hold or represent an interest adverse to the estate, and that are disinterested persons, to represent or assist the [debtor] in carrying out the [debtor]’s duties under this title.

11 U.S.C. § 327(a).

17. The Debtor seeks retention of BKD on a fixed basis pursuant to Bankruptcy Code

section 328(a), which provides that a debtor, subject to Court approval:

[May] employ or authorize the employment of a professional person under section 327 or 1103 of this title, as the case may be, on any reasonable terms and conditions of employment, including on a retainer, on an hourly basis, on a fixed or percentage fee basis, or on a contingent fee basis.

11 U.S.C. § 328(a)

18. Bankruptcy Rule 2014(a) requires that an application for retention include:

[S]pecific facts showing the necessity for the employment, the name of the [firm] to be employed, the reasons for the selection, the professional services to be rendered, any proposed arrangement for compensation, and, to the best of the applicant’s knowledge, all of the [firm’s] connections with the debtor, creditors, any other party in interest, their respective attorneys and accountants, the United States trustee, or any person employed in the office of the United States trustee.

Fed. R. Bankr. P. 2014.

19. The Debtor submits that for all the reasons stated above and, in the Declaration,

the retention of BKD as accountants to the Debtor is warranted. Further, as stated in the

Declaration, BKD is a “disinterested person” within the meaning of Bankruptcy Code section

101(14), as required by Bankruptcy Code section 327(a), and does not hold or represent an

interest adverse to the Debtor’s estate and has no connection to the Debtor, its creditors or its




related parties except as may be disclosed in the Declaration. Accordingly, the retention of BKD

as limited purpose accountants to the Debtor should be approved.

WHEREFORE, the Debtor respectfully requests entry of an order in the form attached

hereto as Exhibit C (i) expanding the scope of the employment and retention of Kevin E. Cook,

CPA and BKD, as limited purpose accountants to the Debtor in this chapter 11 case, nunc pro

tunc to the Petition Date, on a fixed basis, pursuant to 11 U.S.C. §§ 327, 328 and 330; (ii)

authorizing the Debtor to pay BKD $5,000, absent further Court Order, and (iii) granting such

other and further relief as the Court deems just and proper.

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on September 27, 2018, a true and correct copy of the

foregoing was served via the Court's Notice of Electronic Filing upon Registered Users set forth

on the attached Exhibit 1 and served via U.S. Regular Mail to all parties on the Master Service

List attached as Exhibit 2.

s/ Daniel N. Gonzalez Peter D. Russin, Esquire Florida Bar No. 765902 [email protected] Daniel N. Gonzalez, Esquire Florida Bar No. 592749 [email protected] MELAND RUSSIN & BUDWICK, P.A. 200 South Biscayne Boulevard, Ste 3200 Miami, Florida 33131 Telephone: (305) 358-6363 Telecopy: (305) 358-1221 Attorneys for Debtor-in-Possession


Electronic Mail Notice List

The following is the list of parties who are currently on the list to receive email notice/service for this case.

Johanna Armengol [email protected], [email protected] Leyza F. Blanco [email protected], [email protected] Omar K Bradford [email protected], [email protected];scomer@gjb-

law.com;[email protected];[email protected] Jacqueline Calderin [email protected],

[email protected];[email protected] Robert P. Charbonneau [email protected],

[email protected];[email protected];[email protected]

Ileana Cruz [email protected] Ronald M Emanuel [email protected],

[email protected];[email protected] Jorge L Fors [email protected], [email protected] Daniel N Gonzalez [email protected],

[email protected];[email protected];[email protected];[email protected];[email protected]

Harvey W Gurland [email protected], [email protected];[email protected];[email protected]

Robert A Gusrae [email protected], [email protected] Andrew R Herron [email protected],

[email protected];[email protected] Kenneth B Jacobs [email protected], kim.miller@gray-

robinson.com,[email protected] Matthew L Lines [email protected] Kenneth Mather [email protected],

[email protected];[email protected] Glenn D Moses [email protected], [email protected];chopkins@gjb-

law.com;[email protected];[email protected];[email protected] Rachel Nanes [email protected],

[email protected];[email protected];[email protected]

Office of the US Trustee [email protected] Jimmy D. Parrish [email protected],

[email protected];[email protected];[email protected] Edwin G. Rice [email protected], [email protected];[email protected] Peter D. Russin [email protected],

[email protected];[email protected];[email protected];[email protected];[email protected]

Ruben M Saenz [email protected], [email protected] David Samole [email protected], [email protected];[email protected]

EXHIBIT 1


Paul Steven Singerman [email protected], [email protected];[email protected];[email protected]

Trustee Services, Inc. [email protected], [email protected];[email protected]

Brian P Yates [email protected], [email protected];[email protected];[email protected];[email protected]


Miami International Medical Center, LLC d/b/a The Miami Medical Center 5959 NW 7 Street Miami, FL 33126-0000

Blase B. Iaconelli, Assistant General Counsel Aramark Healthcare Support Services, LLC 1101 Market Street, 29th FL Philadelphia, PA 19107

Brad Phister Cardinal Health etc. 7000 Cardinal Place Dublin, OH 43017

Judd Goldberg, Esq. University of Miami 1320 South Dixie Highway Gables One Tower, #1250 Coral Gables, FL 33146

Gregory G. Jackson Sr. Director Legal Affairs NuVasive, Inc. 7475 Lusk Blvd. San Diego, CA 92121

Margaret Schunko Sr. Director of Financial Planning & Operations Arthrex, Inc. 1265 Creekside Parkway Naples, FL 34108

General Electric Capital Corp PO Box 641419 Pittsburgh, PA 15264-1419

Intuitive Surgical Inc 1266 Kifer Rd Bldg 101 Sunnyvale, CA 94086-5304

Intuitive Surgical, Inc. 1020 Kifer Rd Sunnyvale, CA 94086

Laser Surgical of Florida 1121 East Commercial Blvd Suite A Fort Lauderdale, FL 33334

Laser Surgical of Florida Inc 555 NE 15 St Ste 21-A Miami, FL 33132

MidFirst Bank Attn: Legal Dept 501 NW Grand Blvd Oklahoma City, OK 73118

Olympus America Inc FIS/2d Fl 3500 Corporate Pkwy Center Valley, PA 18034-0610

Olympus America Inc Financial Serv Dept 3500 Corporate Pkwy Center Valley, PA 18034-0610

Olympus Financial Services Box 200183 Pittsburgh, PA 15251-0183

US Bank Equipment Finance 1310 Madrid St Marshall, MN 56258

US Bank Equipment Finance PO Box 790448 St Louis, MO 63179-0448

Variety Children's Hospital dba Nicklaus Children's Hospital 3100 SW 62 Ave Attn: CFO Miami, FL 33155

Internal Revenue Service P.O. Box 7346 Philadelphia, PA 19101-7346

Internal Revenue Services Insolvency Unit 7850 S.W. 6th Court Mail Stop 5730 Plantation, FL 33324

Med One Capital Funding, LLC Attn: David H. Leigh 36 South State Street, 14th Floor Salt Lake City, Utah 84111

Alexis Gonzalez Paralegal Collection Specialist Miami Dade Bankruptcy Unit 200 NW 2nd Ave., #430 Miami, FL 33128

Peter V. Fullerton, Esq. 3640 Galileo Drive Fort Collins, CO 80528-4410

EXHIBIT 2


UNITED STATES BANKRUPTCY COURTSOUTHERN DISTRICT OF FLORIDA

Miami Divisionwww.flsb.uscourts.gov

In re:

MIAMI ll’JTERNATIONAL MEDICAL CENTER, LLC’ Case No. 18-12741-LMIcl/b/a THE MIAMI MEDICAL CENTER, Chapter 11

Debtor.______________________________________________________________________________________/

AFFIDAVIT OF ACCOUNTANT

STATE OF MISSOURI )

COUNTY OF JACKSON )

Kevin E. Cook, being duly sworn, states:

1. I am a duly licensed certified public accountant in the state of Missouri and a

partner in the independent public accounting firm of BKD, LLP (“BKD”) with offices located at

1201 Walnut Street, Suite 1700, Kansas City, MO 64106-2246.

2. I am familiar with the matters set forth herein and make this affidavit in support

of the application for approval of BKD as accountants for the Debtor.

3. The Debtor has requested BKD to represent it for the reasons stated in the said

application, specifically, to prepare the Debtor’s IRS Form 1065 and related schedule K-i’s.

4. While employed by the Debtor, BKD will not represent any other entity having an

adverse interest in connection with the case and we are disinterested persons as required by 11

U.S.C. § 327(a). To the best of my knowledge, BKD does not have nor has it had any material,

adverse connection with the Debtor, its affiliates, creditors and any of their attorneys or

accountants in matters related to this case or with any person employed in the office of the U.S.

‘The Debtor’s current mailing address is 5959 NW 7 St, Miami, FL 33126 and its EIN ends 4362.

129005343v1

EXHIBIT A


Trustee, as required by Fed.R.Banlcr.P. 2014 except as set forth below. In this regard, BKD has

reviewed a list of secured creditors and the list of the 20 largest unsecured creditors. BKD has

37 offices in 16 states and, therefore, it is possible that BKD represents or performs work for a

creditor who is not on those two aforementioned lists. BKD has not reviewed the list of all

creditors.

5. BKD performs accounting, auditing, consulting and tax services for Nueterra

Capital, LLC and Affiliates. Specifically, BKD audited financial statements, cost reports and tax

returns for Nueterra Capital and Affiliates, and tax returns for MIMC.

6. On March 8, 2018, Debtor owed BKIJ $10,025. Debtor then paid BKD $ 8,000

on the same date, thereby reducing the balance owed to $2,025 that remained owed as of the

Petition Date. This payment was made in the ordinary course of business and in accordance with

the parties’ engagement agreement, which Debtor has advised BKD that it intends to assume.

BKD has agreed to waive the Petition Date balance due in fhll.

7. With respect to other creditors:

(a) BKD performs audit services for LifeShield National Insurance Co. which writes or

reinsures life and accident and health insurance on borrowers of mortgage and

consumer loans serviced or originated through MidFirst Bank, a related party through

common ownership.

(b) BKD also performs audit services for Homeshield Fire and Casualty Insurance

Company which is a wholly-owned subsidiary of LifeShield National Insurance Co.

8. BKD is otherwise well-qualified to serve as accountants for the Debtor for the

purpose required. BKD has been retained as accountants and financial consultants to render

229005343v1


professional services to trustees, debtors, creditors, creditors’ committees and others in numerous

banlcruptcy matters.

FURTHER AFFIANT SAYETH NAUGHT.

Kevin B. CookSworn to and Subscribed before me on

ch 14, 20t8.ctNotar~ublic, State of Missouri

My Commission Expires: ~~Xt~4c ABBYHEJJNMyCcnflsslonExpfres

- . . *- Mgastl8,2021ClayCoxty

caala6om2g

329005343v1


BKD 1201 Watnut Street, Suite 1700 ! Kansas City, MO 64106-2246

816.221,6300 I Fax 816,221.6380 1 bkd.comCPAs & Advisors

September 18, 2018

Mr. Jeffrey S. Mason, CAO

The Miami Medical Center

5959 NW 7th Street

Miami, Florida 33126

We are pleased to confirm our engagement to prepare the No Utilization Cost Reports of The MiamiMedical Center for the period ended December 31, 2016 and the year ended December 31, 2017. Thisletter specifies the nature and extent of the services we will provide and the terms of our engagement. By

signing and returning this letter, you will confirm your understanding and agreement.

By sending you this engagement letter, we have assumed that you are the person who has the authority to

bind the entity to these terms. If this is not a correct assumption, please furnish us with the name of theindividual with whom this work should be coordinated.

OUR SERVICES AND RESPONSIBILITIES

While cost report preparation involves assembly of information in a financial statement format, thatinformation is solely for cost report purposes and should not be used for any other purpose. Management

is responsible for the representations contained in the cost reports. That responsibility includes posting anyaccounting entries determined to be needed as part of the cost report preparation process.

We will use information from your accounting system and will rely on information furnished by youremployees and representatives. We will not investigate or verify the accuracy or completeness of suchinformation. Our engagement is not designed to prevent or detect and cannot be relied upon to prevent or

detect fraud, abusive acts, errors and omissions including but not limited to:

• Nonallowable costs that you have not identified or that are misclassified or combined in anotheraccount

• Insufficient underlying documentation to support the information you have provided to us

• Billing errors including coding errors, billing for noncovered services and improper bundling or

unbundling of charges

• Insufficient medical records documentation of physician orders, medical necessity of services orperformance of services

• Inappropriate physician arrangements including payments for referrals or contracts that do notcomply with the laws commonly known as the "Stark" or "anti-kickback" laws

• Misstatements that might exist due to fraudulent financial reporting or misappropriation of assets

• Failure to comply with the Medicare and Medicaid conditions ofparticipation

• Failure to comply with the Internal Revenue Code and related regulations

• Related party costs that you have not disclosed to us

Our engagement will not include the submission of cost reports to the relevant regulatory agency. Youunderstand that the timely submission of the cost reports is your responsibility.

PraxitK :MBM&HSAN C T; >?

EXHIBIT B


This engagement is not intended to evaluate the effectiveness of your controls over compliance with

Medicare, Medicaid, IRS or other laws or regulations, or the degree of compliance with those laws or

regulations. You agree to advise us of any adverse communications from regulators or third parties,

including legal counsel, which may affect compliance with laws and regulations related to your cost reports.

Cost reports are subject to review by intermediaries and others with oversight responsibility. Professional

judgment is used in resolving questions where the cost report and reimbursement rules and regulations are

unclear. You understand that reviewers may choose to interpret rules and regulations in a manner different

than that reflected in the cost reports, and reviewers may propose adjustments to your cost reports which

could have an adverse effect on your cost report settlements.

Our engagement is not designed to nor intended to prevent or detect errors, fraud, illegal acts or

misappropriation of assets. Management is responsible for establishing and maintaining effective internal

control over financial reporting and setting the proper tone; creating and maintaining a culture of honesty

and high ethical standards; and establishing appropriate controls to prevent, deter and detect fraud, illegal

acts and noncompliance with laws and regulations. Because of the limits in any internal control structure,

errors, fraud, illegal acts or instances ofnoncompliance may occur and not be detected. Also, in the future,

procedures could become inadequate because of changes in conditions or deterioration in design or

operation. Two or more people may also circumvent controls or management may override the system.

OTHER SERVICES

Regulators, such as Medicare Administrative Contractors, State Medicaid Agencies and contracted cost

report auditors, make requests in connection with their routine activities such as cost report acceptance,

desk reviews, settlements and interim payment calculations. To facilitate timely responses to these routine

requests, by signature on this engagement letter, you have requested that we provide information directly

to the regulators. We will notify you ofroutine requests received directly by us from regulators. Responses

to such requests will be billed separately at our normal hourly rates.

Except for the responses to routine requests by regulators discussed above, our engagement will not include

the submission of documentation to any third parties unless we are separately engaged to do so.

YOUR RESPONSIBILITIES

You agree to timely notify us and, as applicable, provide copies of any correspondence received by you

from regulators regarding the cost reports.

In addition, we may perform other services for you that are not covered by this engagement letter. You

agree to assume full responsibility for the substantive outcomes of the services described above and for any

other services we may provide, including any findings that may result. You also acknowledge these services

are adequate for your purposes, and you will establish and monitor the performance of these services to

ensure they meet management's objectives. Any and all decisions involving management responsibilities

related to these services will be made by you, and you accept full responsibility for such decisions. We

understand you have designated a management-level individual to be responsible and accountable for

overseeing the performance of these services, and you have determined this individual is qualified to

conduct such oversight.

2


ENGAGEMENT FEES

Our fees will be based on time expended. We have estimated the time required by our engagement and

anticipate the fee will not exceed $2,500 per year for a total fee up to $5,000. In addition, you will be billed

travel costs and fees for services from other professionals, if any, as well as an administrative fee of

4 percent to cover items such as copies, postage and other delivery charges, supplies, technology-related

costs such as computer processing, software licensing, research and library databases and similar expense

items.

Our pricing for this engagement and our fee structure are based upon the expectation that our invoices will

be paid promptly. We will issue progress billings during the course of our engagement, and payment of

our invoices is due upon receipt. Interest will be charged on any unpaid balance after 30 days at the rate of

10 percent per annum.

Our engagement fee does not include any time for post-engagement consultation or assistance with your

personnel or third parties, inquiries from regulators including the submission of additional information or

response to audit or desk review adjustments, or depositions, testimony or other services involving such

matters. Charges for any such services will be billed separately.

If our invoices for this or any other engagement you may have with BKD are not paid within 30 days, we

may suspend or terminate our services for this or any other engagement. In the event our work is suspended

or terminated as a result of nonpayment, you agree we will not be responsible for any consequences to you.

OTHER ENGAGEMENT MATTERS AND LIMITATIONS

Our timely completion depends on the level and timing of assistance you provide us in accumulating

information and responding to our inquiries. Inaccuracies or delays in providing this information or the

responses may result in an untimely cost report filing.

Our workpapers and documentation retained in any form of media for this engagement are the property of

BKD. We can be compelled to provide information under legal process. In addition, we may be requested

by regulatory or enforcement bodies to make certain workpapers available to them pursuant to authority

granted by law or regulation. You agree that we have no legal responsibility to you in the event we provide

such documents or information.

You agree to indemnity and hold harmless BKD and its personnel from any claims, liabilities, costs and

expenses relating to our services under this agreement, except to the extent resulting from the intentional

or deliberate misconduct ofBKD personnel.

Any liability of BKD and its personnel to you is limited to the amount of the fee you paid for this

engagement as liquidated damages.

You agree that any dispute regarding this engagement will, prior to resorting to litigation, be submitted to

mediation upon written request by either party. Both parties agree to try in good faith to settle the dispute

in mediation. The American Arbitration Association will administer any such mediation in accordance

with its Commercial Mediation Rules. The results of the mediation proceeding shall be binding only if

each of us agrees to be bound. We will share any costs of mediation proceedings equally.

3


Either of us may terminate these services at any time. Both of us must agree, in writing, to any future

modifications or extensions. If services are terminated, you agree to pay us for time expended to date. In

addition, you will be billed travel costs and fees for services from other professionals, if any, as well as an

administrative fee of4 percent to cover items such as copies, postage and other delivery charges, supplies,

technology-related costs such as computer processing, software licensing, research and library databases

and similar expense items.

Ifany provision of this agreement is declared invalid or unenforceable, no other provision of this agreement

is affected and all other provisions remain in full force and effect.

This engagement letter represents the entire agreement regarding the services described herein and

supersedes all prior negotiations, proposals, representations or agreements, written or oral, regarding these

services. It shall be binding on heirs, successors and assigns of you and BKD.

If these services are determined to be within the scope and authority of Section 1861(v)(l)(I) of the Social

Security Act, we agree to make available to the Secretary of Health and Human Services, or to the

Comptroller General, or any of their duly authorized representatives such of our billing records as are

necessary to certify the nature and extent of our services, until the expiration of four years after the

furnishing of these services.

We may from time to time utilize third-party service providers, e.g., domestic software processors or legal

counsel, or disclose confidential information about you to third-party service providers in serving your

account. We remain committed to maintaining the confidentiality and security of your information.

Accordingly, we maintain internal policies, procedures and safeguards to protect the confidentiality ofyour

information. In addition, we will secure confidentiality agreements with all service providers to maintain

the confidentiality ofyour information. In the event we are unable to secure an appropriate confidentiality

agreement, you will be asked to provide your consent prior to the sharing of your confidential information

with the third-party service provider.

We will, at our discretion or upon your request, deliver financial or other confidential information to you

electronically via email or other mechanism. You recognize and accept the risk involved, particularly in

email delivery as the internet is not necessarily a secure medium of communication as messages can be

intercepted and read by those determined to do so.

You agree you will not modify these documents for internal use or for distribution to third parties. You

also understand that we may on occasion send you documents marked as draft and understand that those

are for your review purpose only, should not be distributed in any way and should be destroyed as soon as

possible.

Any time you intend to reference our firm name in any manner in any published materials, including on an

electronic site, you agree to provide us with draft materials for our review and approval before publishing

or posting such information.

BKD is a registered limited liability partnership under Missouri law. Under applicable professional

standards, partners of BKD, LLP have the same responsibilities as do partners in a general accounting and

consulting partnership with respect to conformance by themselves and other professionals in BKD with

their professional and ethical obligations. However, unlike the partners in a general partnership, the

partners in a registered limited liability partnership do not have individual civil liability, directly or

indirectly, including by way of indemnification, contribution, assessment or otherwise, for any debts,

obligations or liabilities ofor chargeable to the registered limited liability partnership or each other, whether

arising in tort, contract or otherwise.

4


HIPAA BUSINESS ASSOCIATE AGREEMENT

We agree not to use or disclose Protected Health Information of your patients (hereinafter referred to as

"PHI") obtained or produced in any form of media during the course of our work in a manner prohibited

by HIPAA, as amended. We may use or disclose PHI for purposes of (a) performing our engagement,

(b) management and administration ofBKD or (c) carrying out legal responsibilities of BKD. We will not

further disclose information except as permitted or required by this contract or as required by law. When

using or disclosing PHI in relation to this engagement, we will limit disclosures as required by HIPAA. We

will not use PHI in any marketing activities in a manner that would violate HIPAA. We represent to you

that we have implemented what we consider to be appropriate administrative, physical and technical

safeguards to protect the confidentiality, integrity and availability of your PHI as required for us as a

business associate to comply with HIPAA.

With respect to your PHI, we will report to you any breach (as defined in 45 CFR 1 64.402), material security

incident or use or disclosure not authorized by this agreement and, to the extent practical, assist you in

mitigating any harmful effects caused by breaches, material security incidents or unauthorized uses or

disclosures of which we become aware. To assist you in fulfilling your responsibility to notify impacted

individuals and others of a breach involving unsecured PHI (as required under 45 CFR 164.400 et seq.), in

this report we will identify to you, to the extent reasonably possible:

1 . Each individual whose unsecured PHI was subject to the breach.

Any other available information you are required to include in your notification to such2.

individual(s) or others under 45 CFR 164.404(c).

We agree that any material violation of these confidentiality provisions by us entitles you to terminate this

engagement. Similarly, ifwe become aware of a violation ofHIPAA by you that cannot be or is not timely

cured, we may be obligated to terminate this engagement.

BKD agrees to:

1 . Upon their request, make available to the Secretary of Health and Human Services (HHS) our

internal practices and books and records relating to the use and disclosure of PHI for purposes of

determining your compliance with the Security and Privacy Rule, subject to any applicable legal

privileges.

2. Make available information necessary for you to make an accounting of disclosures of PHI about

an individual.

3. To the extent we maintain information that is part of a Designated Record Set, make available

information necessary for you to respond to requests by individuals for access to PHI that is not in

your possession but is considered part of a Designated Record Set.

4. Upon receipt of a written request from you, incorporate any amendments or corrections to PHI

contained in our workpapers in accordance with the Security and Privacy Rule to the extent such

PHI is considered part of a Designated Record Set.

For purposes of this agreement, the term "Security and Privacy Rule" refers to the final rules published to

implement the Administrative Simplification provisions of the Health Insurance Portability and

Accountability Act of 1996, specifically 45 CFR Parts 160 and 164. The terms "Protected Health

Information" and "Designated Record Set" have the same meaning as defined in the Security and Privacy

Rule.

5


At the conclusion or termination of this engagement, any PHI retained by us will be subject to the same

safeguards as for active engagements.

We will obtain from any agents, including subcontractors, to whom we provide PHI received from you, or

created or received by us on behalf of you, an agreement to the same restrictions and conditions that apply

to us with respect to such PHI.

To the extent that any relevant provision of HIPAA is eliminated or held to be invalid by a court of

competent jurisdiction, the corresponding portion of this agreement shall be deemed of no force and effect

for any purpose. To the extent that any relevant provision of HIPAA is materially amended in a manner

that changes the obligations of business associates or covered entities that are embodied in term(s) of this

engagement, the Parties agree to negotiate in good faith appropriate amendment(s) to this engagement to

give effect to such revised obligations. In addition, the terms of this engagement should be construed in

light of any interpretation and/or guidance on HIPAA issued by HHS from time to time.

We will be pleased to discuss this letter with you and look forward to serving you.

arrangements are acceptable to you, please sign the original of this letter and return it to us. If the signed

copy you return to us is in electronic form, you agree that such copy shall be legally treated as a "duplicate

original" of this agreement.

If the above

KMR:RRD:jn

The services and arrangements described in this letter are in accordance with our understanding and are

acceptable to us.

THE MIAMI MEDICAL CENTER

£2-BY

Jeffrey S.MaJson, CAO

o?/>? M*'?'DATE

6


1

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA

Miami Division www.flsb.uscourts.gov

In re: MIAMI INTERNATIONAL MEDICAL CENTER, LLC1 Case No. 18-12741-LMI d/b/a THE MIAMI MEDICAL CENTER, Chapter 11 Debtor. /

EX PARTE ORDER EXPANDING THE SCOPE OF THE EMPLOYMENT AND RETENTION OF KEVIN E. COOK, CPA AND BKD, LLP AS LIMITED PURPOSE

ACCOUNTANTS FOR THE CHAPTER 11 DEBTOR-IN-POSSESSION NUNC PRO TUNC TO THE PETITION DATE

THIS CAUSE came before the Court on an ex parte basis upon the Debtor’s Ex Parte

Application for An Order Expanding the Scope of Employment of Kevin E. Cook, CPA and BKD,

LLP as Limited Purpose Accountants Nunc Pro Tunc to the Petition Date [ECF No. ____] (the

“Application”), pursuant to §§ 327(a) and 328(a) of Title 11 of the United States Code (the

“Bankruptcy Code”), Rules 2014(a) and 2016 of the Federal Rules of Bankruptcy Procedure

1The Debtor’s current mailing address is 5959 NW 7 St, Miami, FL 33126 and its EIN ends 4362.

EXHIBIT C


2

(the “Bankruptcy Rules”) and Rules 2014-1 and 2016-1 of the Local Rules for the United States

Bankruptcy Court for the Southern District of Florida (the “Local Rules”). The Application

requests entry of an order expanding the scope of the Debtor-in-Possession's employment of

Kevin E. Cook, CPA and BKD, LLP to represent it as its Limited Purposes Accountants so that

BKD can prepare the No Utilization Cost Reports for the period ended December 31, 2016 and

December 31, 2017. The Court reviewed the Affidavit of Kevin E. Cook (the “Declaration”)

which makes relevant disclosures as required by Fed.R.Bankr.P. 2014 and 2016. The Court has

reviewed the Declaration, which contains a verified statement as required by Fed.R.Bankr.P.

2014 demonstrating that Kevin E. Cook, CPA and BKD, LLP are disinterested as required by

U.S.C. § 327(a). Pursuant to 11 U.S.C. § 327(a), Fed.R.Bankr.P. 2014(a) and Local Rule 2014-

1(A), the Court is authorized to grant the relief requested in the Application. Upon the record

herein, and after due deliberation thereon, good and sufficient cause exists for the granting of the

relief as set forth herein. Accordingly, it is ORDERED that:

1. The Application is GRANTED, notwithstanding the prepetition payment

received from the Debtor on March 8, 2018 in the amount of $8,000 discounted from $10,025;

however, to the extent there is any provision in the Engagement Agreement attached as Exhibit B

to the Application that does not comply with the Bankruptcy Code, Bankruptcy Rules or the

United States Trustee Guidelines, such provision is not approved.

2. Miami International Medical Center, LLC d/b/a The Miami Medical Center (the

“Debtor”) is authorized to employ and retain BKD as its limited purpose accountants in this

Chapter 11 case in accordance with the terms and conditions set forth in the Application and

Order, nunc pro tunc to the Petition Date.


3

3. The Debtor is authorized to pay BKD up to $2,500 per tax year upon completion

of the No Utilization Cost Reports, absent further Court Order.

4. This Court shall retain jurisdiction to hear and determine all matters arising from

or related to the implementation of this Order.

### Submitted By: Peter D. Russin, Esquire Florida Bar No. 765902 [email protected] MELAND RUSSIN & BUDWICK, P.A. Attorneys for Debtor in Possession 3200 Southeast Financial Center 200 South Biscayne Boulevard Miami, Florida 33131 Telephone: (305) 358-6363 Telefax: (305) 358-1221 Copies Furnished To: Peter D. Russin, Esquire, is directed to serve copies of this Order on all parties in interest and to file a Certificate of Service.


Documents

EX PARTE Debtor Application ex parte · Declaration of Kevin E. Cook, CPA (the “Declaration2”) attached as Exhibit A here and to the initial retention application. See ECF No