The Jerome Golden Center for Behavioral Health, a 44-bed psychiatric hospital in West Palm Beach, Fla., abruptly closed Oct. 18, leaving more than 300 employees without jobs, according to The Palm Beach Post.
The nonprofit hospital, which served low-income and uninsured patients, transferred patients to other organizations after it filed for bankruptcy protection Sept. 24. Officials claimed to have a for-profit buyer for the hospital in early October and filed to dismiss the bankruptcy. However, the deal reportedly fell through Oct. 17, and the hospital closed the next day.
Two former employees of the Jerome Golden Center for Behavioral Health sued the hospital Oct. 20. Their lawsuit, which is seeking class-action status, alleges the hospital violated a federal labor law requiring employers to give workers 60 days' notice before large layoffs, according to The Palm Beach Post.
More articles on legal and regulatory issues:
10 latest healthcare industry lawsuits, settlements
California physician convicted in $12M Medicare scam
Sutter Health reaches surprise settlement in antitrust case