Opioid Hospital Abatement Distributions

Welcome to the Mallinckrodt, PLC Hospital Trust Website For Hospital Opioid Claims

This message is a courtesy reminder that the deadline to submit claims to the Acute Care Hospital Trust was September 30, 2022.

All funds will be spent only in the Authorized Recipient’s Service Area for one or more of the following Hospital Authorized Abatement Purposes:

  1. Providing transportation to treatment facilities for patients with OUD.
  2. Providing continuing professional education in addiction medicine, including addressing programs addressing stigma.
  3. Counteracting diversion of prescribed medication in ED or practice, consistent with the following goal:  reducing opioid misuse, OUD, overdose deaths, and related health consequences throughout the hospital Service Area (county or region).
  4. Participating in community efforts to provide OUD treatment to others in the community, such as those in jails, prisons, or other detention facilities.
  5. Providing community education events on opioids and OUD.
  6. Providing Naloxone kits and instruction to patients upon discharge.
  7. Implementing needle exchange in hospital or adjacent clinic and providing on-site MAT services if possible.
  8. Prospectively providing otherwise unreimbursed or under-reimbursed future medical services for patients with OUD or other opioid related diagnoses.
  9. Building or leasing space to add half-way house beds.
  10. Participating in research regarding development of innovative OUD treatment practices.
  11. Directing moneys to any other public or private Authorized Recipient of funds concerning the treatment of persons with OUD or other opioid-related diagnoses; provided that such recipient’s use of such funds would otherwise constitute an Authorized Abatement Purpose.
  12. Medication-Assisted Treatment (“MAT”) Programs: an aggregate of $50 million may be earmarked for Holders of Hospital Claims to establish and implement a MAT program or to continue, complete and/or implement an existing MAT program already under development.

What is the Hospital Trust?

The Hospital Trust is an Abatement Trust1 that was established in accordance with the Plan, the Confirmation Order, and the Hospital Trust Documents to (a) assume all liability for Hospital Opioid Claims, (b) collect distributions made on account of the Hospital Opioid Claims Share in accordance with the Hospital Trust Documents, (c) administer Hospital Opioid Claims, and (d) make Abatement Distributions to Authorized Recipients, including distributions to Holders of Hospital Opioid Claims, in accordance with the Hospital Trust Documents. The Hospital Trust will evaluate the Hospital Opioid Claims and be in a financial position to make Hospital Abatement Distributions to Hospital Authorized Recipients in accordance with the terms of the Hospital Trust Agreement and the Hospital TDP.

The Hospital TDP sets forth the manner in which the Hospital Trust shall make Abatement Distributions to Holders of Hospital Opioid Claims (such Abatement Distributions, “Hospital Abatement Distributions”) that satisfy the eligibility criteria for Authorized Recipients set forth herein. Hospital Opioid Claims shall be fully discharged pursuant to this Hospital TDP. Hospital Abatement Distributions can only be used for Authorized Abatement Purposes, which are described in detail in the full Hospital TDP.

You may review the Hospital Trust Agreement by clicking here and the Hospital TDP by clicking here.

1 Terms used but not defined herein shall have the meaning ascribed to them in the Plan or in the Hospital TDP, as applicable.

Who is eligible to participate?

Acute Care hospitals eligible to participate are defined as: (a) non-federal acute care hospitals, as defined by CMS, or (b) a non-federal hospital or hospital district that is required by law to provide inpatient acute care and/or fund the provision of inpatient acute care.  Please note that establishing your eligibility to receive any distribution under the Hospital TDP will require particularized and important effort on your part relative to providing support for your Claim.

How do I participate in the Hospital Abatement Distributions?

Participation requires full compliance with and completion of the following steps:

Step 1:
Complete the Hospital Abatement Distribution Registration Form (the “Registration Form”) and Registration Form Exhibit A, as applicable electronically, (which are fillable PDFs that can be downloaded by clicking the links above) and email to registrationform@www.mlnkhospitalsettlement.com.

Step 2:
The Trustee (or its agents or representatives) will communicate instructions to you for accessing a secure file transfer protocol (“SFTP”) to submit your information.

Step 3:
Complete the Business Associate and Confidentiality Agreement (the “BAA”) electronically (which is a fillable PDF that can be downloaded by clicking here) and submit to the SFTP.

Step 4:
The Trustee (or its agents or representatives) will provide you with an executed BAA via the SFTP to download for your records.

Step 5:
Complete the Hospital Abatement Distribution Claim Form, including Hospital Abatement Distribution Claim Form Exhibit A, as applicable (the “Claim Form”) electronically (which are fillable PDFs that can be downloaded by clicking the links above).

Step 6:
Submit the Claim Form and any supporting documents and information requested therein, along with the Requisite Claims Data as described in Exhibit A #20 of Claim Form, to the SFTP. 

Failure to submit all requested information by the Claim Form Deadline of 09/30/2022 disqualifies a Hospital Opioid Claimant (as defined in the FAQ section of this web site) from receiving a Hospital Abatement Distribution.  Additionally, failure to accurately complete any portion of the Registration Form and Claim Form will result in a reduced Hospital Abatement Distribution or disqualification from receiving a Hospital Abatement Distribution.

How much money should a Hospital Opioid Claimant expect from the Hospital Trust?

The gross distributions from the Mallinckrodt bankruptcy estate to the Hospital Trust may aggregate up to approximately $45 million, however, that sum is dependent on factors beyond the control of the Hospital Trust and further, (a) that sum is payable over the span of eight years, and (b) that sum will be reduced by the court-approved  legal fees allocated for the Ad Hoc Group of Hospitals that negotiated this settlement and its inclusion in the confirmed Plan, as well as certain other associated Hospital Trust expenses. The distributions from the Hospital Trust are also dependent on the number of eligible claims ultimately approved to receive a distribution.