Granite City, Ill.-based Gateway Regional Medical Center faced cash flow issues that delayed payroll for more than 600 employees, according to an Aug. 3 letter to employees obtained by Becker’s.
The administration for the hospital, which is part of Reno, Nev.-based American Healthcare Systems, said in the letter it is “actively addressing the issue.”
AHS founder and Chairman Mike Sarian, PhD, and his wife, Evelina Sarian, stepped in with a personal $1 million loan to cover the shortfall. Employees received their paper checks July 31 but were asked to not cash them until the end of the workday Aug. 3, a spokesperson for AHS confirmed Aug. 4 with Becker’s.
“We recognize that the recent payroll delay has created uncertainty and hardship for many of you and your families,” the letter said. “We understand the stress this has caused, and we are deeply grateful that you have continued to come to work each day with compassion and commitment, providing outstanding care to our patients and supporting one another.”
Gateway Regional is also transitioning to a new billing and revenue cycle management company to help strengthen billing, collections and overall financial performance as the hospital works toward longer-term success, according to the letter.
The news comes after Dr. Sarian was ousted in early 2026 on financial fraud suspicion. He is facing lawsuits in Nevada and Florida — the latter of which also involves hospitals in California — that allege he diverted millions of dollars from hospital operating accounts, shifted funds among facilities and used corporate money for personal expenses.
AHS’ Randolph Health in Asheboro, N.C.; Gateway Regional Medical Center; Vista Medical Center East in Waukegan, Ill., and Sherman (Texas) Medical Center are all connected to the lawsuits.
In Nevada, AHS shareholders Faisal Gill and Aramais Paronyan, MD, alleged Dr. Sarian required personal approval for nearly all payments that exceeded $5,000, which created bottlenecks that delayed payments to physicians, vendors and taxing authorities while directing hospitals to funnel operating funds into a centralized corporate account he controlled.
Separately, Glendale, Calif.-based Healthcare Systems of America and five affiliated Florida hospitals allege in a complaint filed June 11 in Miami-Dade County Circuit Court that Dr. Sarian diverted at least $14 million from HSA corporate accounts from September 2024 and January 2026.
In an Aug. 3 stipulation filed in Miami-Dade County Circuit Court, the plaintiffs in that case and Dr. Sarian said they have reached a settlement agreement and asked the court to stay the litigation while it is implemented, with the case to be dismissed once the agreement’s terms are fulfilled.
Separately, Dr. Sarian has filed suit against Mr. Gill and Dr. Paronyan, alleging a coordinated scheme to seize control of the companies he founded, the AHS spokesperson said.
Dr. Sarian has denied the allegations across all three states, calling them an attempt by former business partners to take control of the companies he founded and financed.
“I built these hospitals over decades, and I have done everything in my power to protect them, the patients and employees who depend on them, and my family,” Mr. Sarian said in a June 25 news release shared with Becker’s. “These allegations are now before the courts, and I am confident the facts and the records will speak for themselves.”
Editor’s Note: This story has been updated as of Aug. 4 at 11:47 a.m. CT.
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