The Chapter 7 trustee filed in May an "adversary proceeding" against Saint Catherine Regional Hospital to recover the $300,000. In court documents the regional hospital contends that "this action, combined with the debtor’s previous operational losses, forced the debtor to seek Chapter 11 relief."
Court papers list Specialty Health LLC, Saint Catherine Hospital of Pennsylvania, and Saint Catherine Hospital of Indiana LLC as unsecured creditors but attach no dollar amounts to the claims.
Saint Catherine Regional Hospital remains a fully licensed and operating hospital facility. The state hasn’t imposed any restrictions on the hospital, Terry Whitson, an assistant commissioner in the Indiana Department of Health told HealthLeaders Media in an e-mail exchange.