The CEO, Tim Muntz, has blamed the June closure of St. Margaret’s Health Spring Valley (IL) on the Spring Valley City Bank.
Evidently, the bank "swept nearly $7.3 million" in funds despite a "forbearance agreement" that the two parties entered into 6 weeks earlier. The bank's actions left the hospital "no choice" but to close, Mr. Muntz said in a bankruptcy court filing.
Mr. Muntz said that the bank swept the funds on June 5 causing the facility to announce its closure on June 12 and officially ceased operations on June 16.
The hospital filed for bankruptcy Sept 1, while nearby, Peoria, IL-based OSF HealthCare has been attempting to purchase and reopen the closed St. Margaret’s Health Peru (IL) facilities.
It's possible this could have been avoided had the hospital engaged the underpayment recovery program offered by ADHC.
If you would like a direct meeting with the president/owner, send me an email. Thanks!!
Larry G. Potter
Senior Advisor
Lgpotter33@gmail.com
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