An investor with hospital chain Americore Holdings slammed former CEO Grant White's management, arguing it resulted in the closure of Ellwood City (Pa.) Medical Center late last year, according to The Ellwood City Ledger.
Ellwood City Medical Center, which is owned by Americore Holdings, closed Dec. 10 after a series of financial and clinical issues. Americore filed for Chapter 11 bankruptcy a few weeks later.
Mr. White, who is under criminal and civil investigation, was removed by the bankruptcy court as CEO of Americore after creditors accused him of mismanaging the business.
"I consider what happened to (Ellwood City Medical Center) under Grant White's management to be a disgrace," Michael Lewitt of Third Friday Management told the Ledger.
Mr. Lewitt, the lead secured creditor and substantial equity holder in Americore, said he expects to take over management of Americore after it emerges from bankruptcy.
Mr. Lewitt told the publication he is committed to reopening Ellwood City Medical Center and his firm put together a plan to bring in new management and to repay all of Americore's creditors.
Mr. Lewitt said that Americore is solvent and has more than enough accounts receivable from its other hospitals to repay its debts. He said he plans to develop a comprehensive plan that includes reapplying for an operating license, restaffing the hospital and adding services to better fit community needs.
"Many people in the community were mistreated, and we intend to correct that," Mr. Lewitt told the Ledger. "We intend to provide Ellwood City with the high quality hospital it deserves, and we hope the community will support us in this effort."
Mr. Lewitt's plan to take over management of Americore and reopen Ellwood City Medical Center would need to be approved by the bankruptcy court.