CEO of company that operates 4 hospitals under investigation

CEO of a health care company whose holdings include a hospital in St. Louis is under civil and criminal investigation, St. Louis Post-Dispatch reported Thursday.

newspaper cited a court filing in which U.S. Trustee’s office accused Americore Holdings’ CEO Grant White of mismanagement and said he “has not operated hospitals in a manner that is consistent with public safety and welfare.”

documents were filed this month in Americore Holdings’ bankruptcy case by acting U.S. Trustee Paul Randolph, whose department oversees bankruptcy cases.

An email message left with Americore was not immediately returned. Americore’s attorney filed a motion to withdraw as counsel on Wednesday, citing “irreconcilable differences” with White.

Americore, whose parent company is based in Florida, bought St. Louis’ St. Alexius Hospital out of bankruptcy last year. In December, Americore filed for bankruptcy in a case that includes St. Alexius and three or hospitals.

Court documents say one of hospitals, Ellwood City Medical Center in Pennsylvania, was raided by FBI on Jan. 30, and White’s home was raided day before.

Randolph said White h “improperly siphoned money” from debtors for his personal benefit, but said he did not believe that White has been charged with a crime.

Americore’s attorney said in January that St. Alexius Hospital was concerned that it would run out of some medical supplies and food if cash was not me immediately available, documents said.

Randolph filed documents as part of a motion urging court to appoint a trustee specifically to oversee bankruptcy case, or orwise dismiss it altoger.

St. Alexius serves a higher portion of uninsured patients, and those who rely on Medicare and Medicaid. It has been sold multiple times in recent deces, and struggled financially. It h negative profit margins for 2015, 2016 and 2017 — three most recent years with available data from St. Louis Area Business Health Coalition.

hospital’s former owner, Promise Healthcare Group, filed for bankruptcy in 2018. bankruptcy court authorized Promise to sell its ownership stake in hospital to Americore in January 2019.

Randolph said in documents that closing Americore hospitals “would be devastating to communities y serve, both from a patient health and economic perspective.”

Image Source: AP