The owner and CEO of Americore Holdings, which owns and operates hospitals in three states, has agreed to hand operational control to a Chapter 11 trustee, according to recently filed court documents.
Americore and its affiliated hospitals filed for Chapter 11 bankruptcy in late December. Court documents filed this week show that on Feb. 13 Mr. White signed an agreement with the official committee of creditors in the bankruptcy case to allow a trustee to be appointed and take control of the operation and finances of Americore and its hospitals.
Mr. White, who is under criminal and civil investigation, agreed to step aside after the committee of creditors, one of Americore's largest debt holders and the U.S. Trustee's Office filed motions to appoint a trustee.
In court documents filed earlier this month, U.S. Trustee Paul Randolph alleged Mr. White "grossly mismanaged" the business and "improperly siphoned money from the debtors for his personal benefit."
By agreeing to relinquish control of Americore, Mr. White cleared the way for new management to take control of the company's hospitals in Arkansas, Missouri and Pennsylvania.
On Feb. 18, Mr. White attended a meeting at Americore's St. Alexius Hospital in St. Louis where hospital leaders announced that emergency room director Sonny Saggar had been appointed CEO. Mr. Saggar is replacing interim CEO Russel Kraeger, MD, who will continue to serve as CMO, chief of surgery and chief of the intensive care unit, according to the St. Louis Post-Dispatch.
In the past year, businesses have sued Americore claiming they're owed nearly $800,000 for supplies and services provided to St. Alexius Hospital. During the meeting this week, Mr. White said the hospital is "stabilized" and "vendor payables are down dramatically" from when Americore acquired the hospital in early 2019, according to the St. Louis Post-Dispatch.
The other two hospitals owned by Americore are in dire financial straits. Calico Rock, Ark.-based Izard County Medical Center, which Americore acquired in 2017, owes more than $465,000 in unpaid rent for the hospital building and property. A physician who has practiced medicine at Izard County Medical Center for decades recently told KAIT that the hospital has trouble securing pharmaceuticals because of lack of money.
Americore's hospital in Ellwood City, Pa., has been closed since Dec. 10. Ellwood City Mayor Anthony Court said it's wonderful news that Mr. White will no longer be in control of the hospital, according to the Ellwood City Ledger.
"This is another step in the right direction in regaining our medical center," he told the Ellwood City Ledger.