Alabama Hospital Sued After Embracing Abandoned HealthSouth Project

Trinity Medical Center in Birmingham, Ala., which dropped plans for a hospital in Irondale, Ala., so it could complete an abandoned HealthSouth project nearby, is being sued by the City of Irondale for breach of contract, according to a release by the law firm of Cory Watson Crowder & DeGaris, which represents the city.

Advertisement

In late 2008, the 560-bed medical center abandoned plans to build a $316 million, 424-bed hospital in Irondale and instead decided to complete HealthSouth’s unfinished Digital Hospital in Hoover, Ala., the ambitious brainchild of Richard Scrushy, the former, disgraced CEO of Birmingham-based HealthSouth Corp.

The City of Irondale, however, asserts that it purchased 154 acres of land and issued $32 million in bonds as its part of the agreement and wants to force Trinity to honor the agreement.

In June, Trinity said it offered a financial settlement with the city that would have covered Irondale’s expenses, but the city rejected the deal.

Read the Cory Watson Crowder & DeGaris release about the Trinity Medical Center lawsuit.

Advertisement

Next Up in Uncategorized

Advertisement

Comments are closed.