Mid-Island Hospital, Inc. v. Empire Blue Cross & Blue Shield (In re Mid-Island Hospital, Inc.)

POOLER, Circuit Judge.

This appeal requires us once more to address the meaning of “property of the estate” as it is used in the Bankruptcy Code. Plaintiffs Mid-Island Hospital, Inc. (the “Hospital”) and Official Committee of Unsecured Creditors of Mid-Island Hospital, Inc. (the “Committee”) (collectively, “Mid-Island”) claim that because funds that state regulation required Empire Blue Cross and Blue Shield (“Empire”) to withhold from payments otherwise due to the Hospital are property of the Hospital’s estate in bankruptcy, Empire is obligated to pay interest on the withheld funds to the…