A lawsuit has been filed against Doctors' Hospital of Michigan in Pontiac, seeking repayment of nearly $2 million that was loaned to the hospital between April 2013 and May 2014, according to a report by The Macomb Daily.
The lawsuit was filed by Surindar Jolly, MD, a member of the hospital's board of directors, Sanjay Jolly, an Orchard Lake Village, Mich., resident, and Shree Investment Group, all of which entered into promissory notes with the hospital.
The hospital, then North Oakland Medical Center, closed briefly in 2008 after filing bankruptcy and reopened that year as the for-profit Doctors' Hospital of Michigan after being purchased by a group of 40 physician investors, according to the report.
In 2013, dozens of employees were laid off, and eight of the 40 physicians who own the hospital helped the organization make payroll, The Oakland Press reported at the time. Also that year, the hospital was fined a total of $5,200 by the Michigan Occupational Safety and Health Administration because it did not maintain a safe workplace, the report reads.
The lawsuit seeks full repayment of all promissory notes, along with costs, fees and expenses.
Doctors' Hospital of Michigan CEO Elizabeth Knisely told The Macomb Daily "It is common knowledge within the community that this hospital has been financially struggling. We're continuing to look at strategic directions to provide a community setting for individuals seeking services."
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