Missouri hospital hit with class-action suit over failure to pay for employees' insurance

Employees filed a class-action lawsuit against Pinnacle Regional Hospital in Boonville, Mo., on Jan. 15, the same day it abruptly closed, according to KCUR.

Pinnacle Regional, which gave less than one day's notice before it shut down, allegedly failed to pay for employees' health insurance premiums after promising it would do so. As a result, employees were allegedly left with unpaid medical bills not covered by insurance, according to KCUR

Douglas Palzer, who bought Pinnacle Regional in 2018, provided some details about the hospital's financial situation in an email to employees Jan. 16. He said employee payroll and benefits will be two of Pinnacle's top priorities as funds come in. The hospital missed its regularly scheduled payroll Jan. 15.

Mr. Palzer also said Pinnacle Health Care System, the Boonville hospital's parent company, may file for Chapter 11 bankruptcy protection.

The lawsuit filed by employees, which seeks damages for fraud and other counts, is one of several legal matters pending against Pinnacle Regional. A healthcare staffing company is suing the hospital for alleged nonpayment of more than $200,000, and a physician services company is suing for alleged nonpayment of $24,000. Last year, a laboratory services company sued Pinnacle Regional for nonpayment and obtained a $92,000 default judgment, according to the report.

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