Saint Catherine Hospital of Indiana, a regional facility that performs weight-loss surgery and other procedures, filed for chapter 11 Tuesday after being sued by an affiliated hospital in Pennsylvania that is also in bankruptcy, Dow Jones Small Cap reported yesterday. Court documents show that amid net operating losses of $1.2 million last year, Saint Catherine Indiana was sued for $300,000 by the chapter 7 trustee unwinding its sister hospital, Saint Catherine Hospital of Pennsylvania. The trustee alleged in a May 8 adversarial lawsuit that Saint Catherine Pennsylvania transferred cash to Saint Catherine Indiana to cover payroll expenses and was never paid back.
