Foreclosure lawsuit pending after Kansas hospital averts having utilities shut off

Hillsboro (Kan.) Community Hospital, which avoided having its utilities shut off earlier this month, is listed in a foreclosure lawsuit that remains pending, according to the Hillsboro Free Press.

The lawsuit is reportedly regarding debt on a $9.7 million construction loan issued for the hospital in 2015. In the lawsuit, the Bank of Hays asks that the principal on the loan be paid within 14 days of a judge's ruling on the issue, the Free Press states. If that doesn't happen, the bank seeks a sale of the property to recoup money its owed.

Hillsboro Community Hospital is managed by Kansas City, Mo.-based EmpowerHMS, which is facing financial challenges and has reportedly worked with the city of Hillsboro to pay the hospital utility bills. 

A call by the Free Press to EmpowerHMS was not returned.

 

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