The owner of a St. Louis-based hospital is accused in a lawsuit of diverting funds meant to improve the hospital, according to the St. Louis Business Journal.
B.R. Building Resources Co. filed a lawsuit Nov. 2 alleging the owners of SA Hospital Acquisition Group, which owns South City Hospital, requested $1.4 million from a $6.5 million construction fund set aside for the hospital's projects. According to the lawsuit, Lawrence Feigen and Jeff Ahlholm, managing members of SA Hospital Acquisition, told B.R. Building Resources Co. that financier Twain Financial Partners approved the funds withdrawal for operating costs.
The funds were transferred in installments on Jan. 3 and March 3, but the lawsuit alleges on March 5 B.R. Building Resources discovered Twain didn't approve the requested funds and halted further funding.
The lawsuit alleges Mr. Feigen and Mr. Ahlholm diverted the funds for "personal use." SA Hospital Acquisition denied the allegations.
American Healthcare Systems, a California-based company, is in the process of acquiring South City.