Two physicians are suing the partnership that owns a hospital within the Houston-based St. Luke’s Episcopal Health System over a buy-back offer that would clear the hospital of its physician investors, according to a Houston Chronicle report.
Approximately 100 physicians bought a $7.8 million stake in St. Luke’s Sugar Land Partnership, the management company that owns the 100-bed St. Luke’s Sugar Land (Texas) Hospital. The physicians paid $40,000 per share and the hospital opened in 2008. Due to underperformance, the shares are now worth $5,000 each.
The Partnership has offered to buy back shares from physician investors, making the hospital completely owned by St. Luke’s Episcopal Health System. Shatish Patel, MD, one of the physicians who sued the partnership, claims the managing partner has “stonewalled” requests for additional financial information. He also wants to know why St. Luke’s has not sought other buyers or considered the physicians to buy out the hospital’s shares.
An attorney said it seems the managing partner is trying to limit lawsuits at the cost of investors.
Read the Houston Chronicle report on St. Luke’s Sugar Land Hospital.
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