Pennsylvania hospital lays off staff after bank accounts frozen

Ellwood City (Pa.) Hospital is facing financial troubles, but members of its advisory board are confident the hospital will improve its financial position, according to the Ellwood City Ledger.

Americore Health, a privately held company based in Fort Lauderdale, Fla., owns and manages Ellwood City Hospital. Nine complaints were filed against Americore earlier this year alleging the company defaulted on contracts totaling $7.1 million. In June, New York's Supreme Court ruled in favor of the creditors, resulting in bank accounts tied to Ellwood City Hospital being frozen, according to the Ellwood City Ledger, which cited court documents.

Ellwood City Hospital couldn't make payroll or pay other expenses after the accounts were frozen, and was forced to implement layoffs. Hospital officials have not released the exact number of layoffs or the departments affected, according to the report.

Despite Ellwood City Hospital's financial struggles, members of its advisory board say it will only take a few weeks for the hospital to improve its financial position.

Americore Health CEO Grant White told Alan Dambaugh, chairman of the hospital's seven-member advisory board, Ellwood City Hospital has the financial backing it needs to continue operating.

"It looks grim now, but within the next few weeks we should be able to get the labs running," which is a major revenue source for the hospital, Mr. Dambaugh told the Ellwood City Ledger. "We just have to ride it out for another two weeks."

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