Physician-Owned Hospital in Indiana Sued by Former Owners for Conspiring to Defraud

Physician-owned Franciscan Physicians Hospital in Munster, Ind., has been sued by the hospital’s former owners for breach of contract and conspiracy to defraud, according to a Post-Tribune of Northwest Indiana report.

iHealthcare and Heartland Memorial Holdings, the two companies that owned the hospital before it filed for bankruptcy three years ago and reopened with new owners, are suing Sisters of St. Francis Health Services in Mishawaka, Mich., Franciscan Physicians Hospital, Franciscan’s president and two current physician owners in Cook County (Ill.) circuit court.

iHealthcare and Heartland Memorial Holdings seek $28 million in actual damage and $25 million in punitive damages along with pre-judgment interest and legal fees. The suit is Franciscan’s fifth in three years.  

Read the Post-Tribune report on the lawsuit involving Franciscan Physicians Hospital.

Read about other lawsuits and investigations:

-12 Lawsuits & Investigations Recently Settled by Hospitals

-West Virginia Medicaid Facing Two Lawsuits, Withdrawal by Health System Due to Underpayment

-Nurses Union Files Charge Against Michigan Hospital for Unfair Labor Practices

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