Tenet Business Services and Conifer Revenue Cycle Solutions filed a motion Oct. 15 in Delaware bankruptcy court, requesting a judge enforce an order requiring a bankrupt Pennsylvania hospital owner to make payments for services provided, according to Law360.
Center City Healthcare and two of its hospitals in Philadelphia — Hahnemann University Hospital and St. Christopher's Hospital for Children — entered Chapter 11 bankruptcy in June. At that time, the hospitals owed Tenet and Conifer "tens of millions in unpaid invoices" for transitional and administrative services, according to court documents filed in the bankruptcy case.
In September, the bankruptcy court entered an order directing Center City Healthcare to pay Tenet and Conifer $400,000 per week for services going forward and to pay the companies $1 million after receiving funds from Health Partners Plan.
Tenet and Conifer say they have continued to provide services to the hospitals since the order was entered, but Center City Healthcare has not upheld its obligations under the order.
Center City Healthcare appealed the order and is seeking to force Tenet and Conifer to continue to perform services until the end of the year, when the sale of St. Christopher's may close, according to Tenet's motion. Center City Healthcare is also allegedly refusing to obtain HPP's consent to transfer funds to Tenet and Conifer.
Tenet and Conifer are asking the court to enforce the September order and award the companies fees and expenses in connection with the matter.
More articles on healthcare finance:
Private equity pushes into healthcare: 6 latest deals
Tennessee healthcare company booted from Nasdaq
10 hospitals seeking CFOs