Mexico, Mo.-based hospital operator Ziva Medical has laid off about 30 employees, including its CEO Amanda Shurtz, and paused plans to reopen two community hospitals, The Mexico Ledger reported Jan. 24.
ZivaMed is currently in federal bankruptcy court. It also faces lawsuits from Central Bank and former employees because of unpaid wages and medical insurance premiums that led to large medical bills by Noble Health, the former owners of Audrain County Hospital in Mexico, Mo., according to the report.
Kansas City, Mo.-based Noble shuttered hospital operations and laid off the facility's employees on March 25, 2022, according to KOMU. Audrain County Hospital has changed owners multiple times since, with ZivaMed acquiring ownership of the hospital as well as Callaway Community Hospital in Fulton, Mo., last year.
"When we came in, we were hit with tremendous lawsuits," Gary Greenstein, co-owner of ZivaMed, told local radio station KXEO. "When we came to understand the tremendous mess that the former owners left the hospital in, we considered walking away."
ZivaMed hoped to resolve the legal issues last fall, but financial pressures mounted as the litigation stretched into 2024.
"This is unfortunately delaying our ability to start operations and keep our team employed," Mr. Greenstein said in a news release.
Despite the litigation and financial challenges, the company maintains that its plan is still to reopen the hospitals, "as described in the bankruptcy reorganization plan that's before the court," Kalman Groner, co-owner of ZivaMed, said.