A lawsuit against Indiana's first physician-owned hospital has been re-filed by its former operator, which claims hospital executives forced the hospital into bankruptcy, according to a Post-Tribune report.
iHealthcare and Heartland Memorial Holdings owned Franciscan Physicians Hospital in Munster before it was acquired by Mishawaka, Mich.-based St. Francis Health Services in 2007. The hospital filed for bankruptcy and reopened with its new owner.
iHealthcare and Heartland Memorial Holdings originally sued Sisters of St. Francis Health Services, Franciscan Physicians Hospital, FPH President Brenda Green and two physician owners, Hilton Hudson, MD, and Paul Jones, MD. That first suit was filed a year ago.
Now, in a revised suit filed Monday, iHealthcare and Heartland Memorial Holdings have only sued Ms. Green, Dr. Hudson and Dr. Jones.
The suit claims the three individuals purposely sold the hospital for less than it was worth. It also claims they took $8 million of the proceeds for themselves instead of paying off the hospital's debt, which forced it further into the red and allowed St. Francis to acquire the hospital for a low price.
The suit was re-filed in the U.S. District Court in Hammond, Ind.
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iHealthcare and Heartland Memorial Holdings owned Franciscan Physicians Hospital in Munster before it was acquired by Mishawaka, Mich.-based St. Francis Health Services in 2007. The hospital filed for bankruptcy and reopened with its new owner.
iHealthcare and Heartland Memorial Holdings originally sued Sisters of St. Francis Health Services, Franciscan Physicians Hospital, FPH President Brenda Green and two physician owners, Hilton Hudson, MD, and Paul Jones, MD. That first suit was filed a year ago.
Now, in a revised suit filed Monday, iHealthcare and Heartland Memorial Holdings have only sued Ms. Green, Dr. Hudson and Dr. Jones.
The suit claims the three individuals purposely sold the hospital for less than it was worth. It also claims they took $8 million of the proceeds for themselves instead of paying off the hospital's debt, which forced it further into the red and allowed St. Francis to acquire the hospital for a low price.
The suit was re-filed in the U.S. District Court in Hammond, Ind.
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