PA Medical Center Files for Chapter 11

Margaret Dick Tocknell, for HealthLeaders Media , April 11, 2012

Doran told HealthLeaders Media that the medical center simply got to the point where it had no patients and could no longer continue to operate.

Saint Catherine Medical Center and Saint Catherine Regional Hospital are operated by Saint Catherine Healthcare, LLC. In March 2012 the three were ordered to pay a $168,760 judgment to Lease Associates. On March 26, PPL Electric Utilities filed a lawsuit against Saint Catherine and five affiliates in county court. No details regarding the claim are available.

Claims for Unpaid Employee Wages
In addition, Philadelphia law firm of Willig Williams & Davidson is representing the American Federation of State, County and Municipal Employees, District Council 89, AFL-CIO in the bankruptcy case. In an e-mail exchange, attorney Amy L Rosenberger explained that the
AFSCME represents about 100 employees at the medical center.

Although the investigation is ongoing, Rosenberger said “there are claims for unpaid employee wages, failure to properly disburse funds withheld through employee payroll deduction (including employee contributions toward healthcare, the 401(k) plan, and union dues), as well as failure to comply with federal law governing mass layoffs of employees.” She added that “it appears that the improper use of employee payroll deductions has been going on for some time, without the employees’ knowledge.” The full extent and value of employee claims is not yet known.

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