The University of the Incarnate Word alleges that Dallas-based Steward Health Care Systems failed to pay $4.5 million in unpaid salaries to residents completing training at Texas Vista Medical Center, which closed May 1, according to the San Antonio Current.
According to the report, Steward signed a contract with CMS agreeing to pay a $6,250 monthly salary to more than 100 residents at the 325-bed hospital in San Antonio.
An April 5 lawsuit filed by the university alleges that residents working at the hospital went unpaid between July 2019 and September 2022. By Aug. 31, Steward and Texas Vista owed $1.3 million in compensation to the residents, according to the university.
On Oct. 4, Texas Vista CEO said the hospital would pay the salaries within 60 days, but the payments allegedly were never made, with the amount owed rising to $4.5 million in April, according to the lawsuit.
Allegations made against Steward in the lawsuit include breach of contract, fraud and unjust enrichment.
A spokesperson for Steward told Becker's that the health system does not comment on pending litigation.