Hospital president, doc owners allegedly pocket $8M to file bankruptcy, face suit

The former operator of Indiana's first physician-owned hospital has sued executives for forcing the hospital into bankruptcy, reports the Post-Tribune.

According to the modified lawsuit, the president and two physician owners of Franciscan Physicians Hospital allegedly kept $8 million of the profits instead of paying the hospital's bills, pushing the hospital further into debt and enabling the new owner, St. Francis Health Services, to purchase the hospital for a lower price.

Last year, operator iHealthcare and Heartland Memorial Holdings originally sued the hospital's new owner and the hospital in addition to Franciscan Physicians Hospital President Brenda Green and owners Drs. Hilton Hudson and Paul Jones.

With filing bankruptcy drawing suspicion as a business strategy for struggling hospitals, execs better be prepared to defend the decision to file Chapter 11 papers.

To learn more:
- read the Post-Tribune article