UNITED STATES DISTRICT COURT 

DISTRICT OF PUERTO RICO 

In re: 

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO, 

as representative of 

THE COMMONWEALTH OF PUERTO RICO, et al., 

 

Debtors.1

PROMESA 

Title III 

No. 17 BK 3283-LTS 

Re: ECF Nos. 18602, 21005, 22400, 

22682, 22736, 22952, 23398 

(Jointly Administered) 

STATUS REPORT CONCERNING 

COMMUNITY HEALTH FOUNDATION OF P.R. INC.’S MOTION FOR 

ALLOWANCE AND PAYMENT OF ADMINISTRATIVE EXPENSE 

To the Honorable United States District Court Judge Laura Taylor Swain: 

The Commonwealth of Puerto Rico (the “Commonwealth”), by and through the Financial 

Oversight and Management Board for Puerto Rico (the “Oversight Board”), as the 

Commonwealth’s representative pursuant to section 315(b) of the Puerto Rico Oversight, 

Management, and Economic Stability Act (“PROMESA”),2 and Community Health Foundation of 

P.R. Inc. (“CHF” and, together with the Oversight Board, the “Parties”), respectfully submit this 

 

1

 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case number and the last four 

(4) digits of each Debtor’s federal tax identification number, as applicable, are the (i) Commonwealth of Puerto 

Rico (Bankruptcy Case No. 17 BK 3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto Rico Sales 

Tax Financing Corporation (“COFINA”) (Bankruptcy Case No. 17 BK 3284-LTS) (Last Four Digits of Federal 

Tax ID: 8474); (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case No. 17 BK 

3567-LTS) (Last Four Digits of Federal Tax ID: 3808); (iv) Employees Retirement System of the Government of 

the Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17 BK 3566-LTS) (Last Four Digits of Federal 

Tax ID: 9686); (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17 BK 4780-LTS) 

(Last Four Digits of Federal Tax ID: 3747); and (vi) Puerto Rico Public Building Authority (“PBA”) (Bankruptcy 

Case No. 19-BK-5523-LTS). (Title III case numbers are listed as Bankruptcy Case numbers due to software 

limitations). 

2

 PROMESA has been codified in 48 U.S.C. §§ 2101–2241. 

Case:17-03283-LTS Doc#:23768 Filed:03/09/23 Entered:03/09/23 13:13:09 Desc: Main

Document Page 1 of 5
2 

joint status report relating to Community Health Foundation of P.R. Inc.’s Motion for Allowance 

and Payment of Administrative Expense [ECF No. 18602] (the “Motion”), stating as follows: 

Status Report 

1. Pursuant to the Court’s Order Setting Deadline for a Status Report Concerning 

Community Health Foundation of P.R. Inc.’s Motion for Allowance and Payment of Administrative 

Expense [ECF No. 22682] (the “October Order”), on October 28, 2022, the Parties filed a Joint 

Status Report Concerning Community Health Foundation of P.R. Inc.’s Motion for Allowance and 

Payment of Administrative Expense [ECF No. 22736] (the “October Status Report”). As 

requested, the October Status Report set forth the Parties’ positions regarding the issues that 

remained in dispute in connection with the Motion, the documents and information necessary to 

resolve those issues, and the Parties’ proposed schedule for exchanging such documents and 

information. The October Status Report also requested that the Motion be adjourned from the 

November 2, 2022 omnibus hearing to the December 14, 2022 omnibus hearing. Id. ¶ 11. 

2. After the October Status Report was filed, CHF provided to the Oversight Board 

certain documents and information described in paragraphs 5 through 7 of the October Status 

Report. The Parties also entered into the agreement contemplated by paragraph 8 of the October 

Status Report governing the confidentiality of such documentation. The Oversight Board and its 

advisors began analyzing these documents to determine what CHF’s PPS rate should be for the 

years 2020 and 2021, what wraparound payments, if any, are owed to CHF, and whether any 

additional information is needed from CHF to complete their analysis. 

3. On November 29, 2022, the Parties filed subsequent Status Report Concerning 

Community Health Foundation of P.R. Inc.’s Motion for Allowance and Payment of Administrative 

Expense [ECF No. 22932] (the “November Status Report”). The November Status Report 

Case:17-03283-LTS Doc#:23768 Filed:03/09/23 Entered:03/09/23 13:13:09 Desc: Main

Document Page 2 of 5
3 

explained that the Oversight Board and its advisors were in the process of reviewing the 

documentation provided by CHF, as well as documentation provided by the Puerto Rico 

Department of Health and the Puerto Rico Health Insurance Program discussed in paragraphs 9 

and 10 of the October Status Report. The November Status Report requested that, in order to allow 

the Oversight Board and its advisors time to complete its analysis, the hearing on the Motion be 

adjourned to the omnibus hearing scheduled for February 1, 2023. On December 1, 2022, the 

Court granted the Parties’ request and set the Motion for hearing in connection with the February 

1, 2023, omnibus hearing. Order Adjourning Hearing Concerning Community Health Foundation 

of P.R. Inc.’s Motion for Allowance and Payment of Administrative Expense [ECF No. 22952]. 

4. After the Parties filed the November Status Report, the Oversight Board and its 

advisors completed their analysis of the documentation provided by CHF. Such analysis showed, 

in the opinion of the Oversight Board, discrepancies between some components of the wraparound 

payment formula as stated in Exhibit A to the Motion and the information reflected in the backup 

documentation that CHF provided. On January 11, 2023, the Oversight Board sought clarification 

as to these discrepancies and provided CHF with a list of information required to validate 

information CHF provided in support of its claims. On January 20, 2023, CHF provided its 

response to the Oversight Board’s request, in which CHF addressed specific inquiries raised by 

the Oversight Board, referred to previously furnished information and provided newly requested 

documentation. 

5. On January 26, 2023, the Parties filed another Status Report Concerning 

Community Health Foundation of P.R. Inc.’s Motion for Allowance and Payment of Administrative 

Expense [ECF No. 23389] (the “January Status Report”). Therein, the Oversight Board and its 

advisors stated that they intended to evaluate CHF’s response and the newly provided information, 

Case:17-03283-LTS Doc#:23768 Filed:03/09/23 Entered:03/09/23 13:13:09 Desc: Main

Document Page 3 of 5
4 

incorporate that information into their analysis, and determine if any additional information or 

documentation is needed. The January Status Report requested that the hearing on the Motion be 

adjourned to the omnibus hearing scheduled for March 15, 2023 in order to allow time for the 

Oversight Board to review that documentation and determine next steps. On January 26, 2023, 

the Court granted the Parties’ request and set the Motion for hearing in connection with the March 

15, 2023 omnibus hearing. Order Adjourning Hearing Concerning Community Health 

Foundation of P.R. Inc.’s Motion for Allowance and Payment of Administrative Expense [ECF No. 

23398]. 

6. Since the January Status Report was filed, the Parties have continued to exchange 

information with a goal of quantifying the wraparound payment that CHF is due, if any, and 

reconcile information provided by CHF against information provided by Commonwealth entities. 

Most recently, on March 7, 2023, the Parties, along with representatives of the Puerto Rico 

Department of Health, the Puerto Rico Health Insurance Administration, and the Puerto Rico 

Fiscal Agency and Financial Advisory Authority, met in person to discuss, among other issues, 

the documentation provided and such other information that would facilitate the further 

reconciliation of asserted claims. At the March 7 meeting, the Parties agreed to exchange such 

additional documentation during the week of March 13, to review and present findings regarding 

such documentation during the week of April 3, if not sooner, and to hold another meeting, 

currently scheduled for April 18, 2023. 

7. To allow time to compile and analyze this documentation, the Parties respectfully 

request that the hearing in connection with the Motion be adjourned to the Omnibus Hearing 

scheduled for June 7, 2023. 

[Remainder of page intentionally left blank]

Case:17-03283-LTS Doc#:23768 Filed:03/09/23 Entered:03/09/23 13:13:09 Desc: Main

Document Page 4 of 5
5 

Dated: March 9, 2022 

San Juan, Puerto Rico 

Respectfully submitted, 

O’NEILL & BORGES LLC 

By: /s/ Hermann D. Bauer 

Hermann D. Bauer 

USDC No. 215205 

250 Muñoz Rivera Ave., Suite 800 

San Juan, PR 00918-1813 

Telephone: (787) 764-8181 

Facsimile: (787) 753-8944 

Email: hermann.bauer@oneillborges.com 

PROSKAUER ROSE LLP 

By: /s/ Brian S. Rosen 

Martin J. Bienenstock* 

Brian S. Rosen* 

Julia D. Alonzo* 

Eleven Times Square 

New York, NY 10036 

Telephone: (212) 969-3000 

Facsimile: (212) 969-2900 

Email: mbienenstock@proskauer.com 

 brosen@proskauer.com 

 jalonzo@proskauer.com 

* admitted pro hac vice 

Attorneys for the Financial Oversight and 

Management Board and as Representative of the 

Commonwealth 

CORDOVA-AYUSO LAW OFFICE 

LLC 

By: /s/ Lucas A. Córdova-Ayuso 

Lucas A. Córdova-Ayuso, Esq. 

USDC-PR No. 226805 

P.O. BOX 194021 

San Juan, PR 00919-4021 

Tel.: (787) 230-0463 

Email: lac@calawpr.com 

Counsel for Community Health Foundation 

of P.R. Inc. 

 

Case:17-03283-LTS Doc#:23768 Filed:03/09/23 Entered:03/09/23 13:13:09 Desc: Main

Document Page 5 of 5