Amends bankruptcy provisions to prescribe guidelines for disposal of the patient records of a health care business (including a hospital, a health maintenance organization, or a nursing home) that commences a proceeding for debtor relief. Provides for disposal with a State or Federal agency, the patient or an insurance provider, or by destruction.

(Sec. 3) Allows an administrative expense claim for the costs of closing a health care business, including disposal of patient records and transfer of patients to another health care business.

(Sec. 4) Requires the bankruptcy court to appoint an ombudsman to represent the interests of the patients of a health care business within 30 days after commencement of a case under chapter 7 (Liquidation), 9 (Adjustment of Debts of a Municipality), or 11 (Reorganization).

(Sec 5.) Requires the bankruptcy trustee to use all reasonable and best efforts to transfer patients from the health care business in the process of being closed to an appropriate substitute.