Marshall, Mo.-based John Fitzgibbon Memorial Hospital has transitioned to new ownership and management following approval of the transaction by a U.S. bankruptcy court.
Chesterfield, Mo.-based American Medical Administrators confirmed Sept. 9 that it has begun managing Fitzgibbon Hospital and related healthcare operations. The hospital, skilled nursing facility and Fitzgibbon-operated rural health clinics will remain open and continue serving patients and residents during the transition.
AMA said some services and operations could be modified as it evaluates the facilities’ needs and works to establish a more sustainable operating model.
“Healthcare is vital to the well-being of every community, and our immediate priority is ensuring continuity of care while we work alongside the Fitzgibbon team to evaluate operations and establish a sustainable path forward,” AMA CEO Nick DeStefane said in a news release.
The transition comes days after Fitzgibbon sued its planned buyer, Strawberry Fields, and AMA, alleging they backed out of a court-approved $10.5 million sale shortly before closing.
Fitzgibbon, which filed for Chapter 11 bankruptcy protection in April, said in the Sept. 2 complaint that it selected Strawberry Fields and AMA over higher offers because of commitments to maintain care, jobs and Medicare participation.
The transaction had been scheduled to close Aug. 14. Fitzgibbon alleged AMA later raised concerns involving a letter of credit, executory contracts, an excluded asset and billing compliance. The hospital claimed it addressed those issues, but AMA determined around Aug. 20 that the deal’s economics no longer worked.
Fitzgibbon also alleged that AMA subsequently proposed shutting down inpatient services, reducing outpatient care and moving away from earlier Medicare commitments. At the time, the hospital asked the bankruptcy court to compel the buyers to complete the transaction.
AMA told Becker’s Sept. 10 that the lawsuit has been resolved and the sale has closed. It is now working with employees, physicians, patients, residents and community stakeholders to maintain continuity of services during the transition.
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