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Closed Sacred Heart Hospital Reportedly Had Interested Buyer

Sacred Heart Hospital, the troubled for-profit hospital in Chicago that closed last week, had a potential buyer that could have prevented it from closing, according to a Chicago Sun-Times report.

Paul Tuft, founder of Southwest Healthcare Services in Scottsdale, Ariz., reportedly submitted a bid to acquire the hospital on June 28, days before the 119-bed Sacred Heart closed. However, the hospital reportedly turned down the offer, according to the Sun-Times. The report did not say whether Mr. Tuft's company would still pursue a buyout of Sacred Heart.

Since then, Sacred Heart abruptly closed and filed for Chapter 11 bankruptcy. Acting Sacred Heart CEO Karen Davis told the Sun-Times the hospital had to temporarily close because it was not yet protected under bankruptcy.

In mid-April, federal authorities arrested CEO Edward Novak, CFO Roy Payawal and several physicians for allegedly participating in a kickback scheme. The alleged scheme involved physicians receiving more than $225,000 in cash and other forms of payment for referring Medicare and Medicaid patients to Sacred Heart.

More Articles on Closed Hospitals:
LSU Closes Moss Regional, Gives Up Management of 3 Hospitals
9 Hospitals That Have Closed in 2013
Pacific Health Corp. to Close All Hospitals

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