A U.S. bankruptcy court trustee has asked for an investigation of the sale of Christ Hospital in Jersey City, N.J., after an email alleged possible misconduct during the sale process, according to a Jersey Journal report.
The sale of the bankrupt Christ Hospital was finalized this past July. Hudson Holdco, a company that operates two other for-profit hospitals in New Jersey, became the owner.
Community Healthcare Associates was one of the failed buyers. The bankruptcy court trustee said he wanted a full examination of the proceedings after a Sept. 12 email from Bill Colgan, the head of CHA, to Warren Martin, Christ Hospital's bankruptcy attorney, displayed new details, according to the report.
According to the email, Mr. Colgan asked Mr. Martin to "fix" the sale process for CHA. In return, CHA would not pursue litigation against Mr. Martin's firm for a separate incident. Hudson Holdco still won the bid, but the court said it wants confirmation that the sale was "not tainted in any way by self dealing, a power play or an attempt to improperly influence the sale process," according to the report.
The sale of the bankrupt Christ Hospital was finalized this past July. Hudson Holdco, a company that operates two other for-profit hospitals in New Jersey, became the owner.
Community Healthcare Associates was one of the failed buyers. The bankruptcy court trustee said he wanted a full examination of the proceedings after a Sept. 12 email from Bill Colgan, the head of CHA, to Warren Martin, Christ Hospital's bankruptcy attorney, displayed new details, according to the report.
According to the email, Mr. Colgan asked Mr. Martin to "fix" the sale process for CHA. In return, CHA would not pursue litigation against Mr. Martin's firm for a separate incident. Hudson Holdco still won the bid, but the court said it wants confirmation that the sale was "not tainted in any way by self dealing, a power play or an attempt to improperly influence the sale process," according to the report.
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