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Judge Keeps Hillsboro Hospital Out of Empower’s Hands

Submitted by jhartgen@abi.org on

Unlike a majority of the fourteen hospitals with ties to Empower, Hillsboro (Kansas) Community Hospital will not be grouped into an Empower bankruptcy, but will continue progressing in its own bankruptcy case, the Hillsboro Free Press reported. The hospital declared bankruptcy on March 13 and has been moving forward in the case. But, according to a press release issued by the lawyers for the hospital, on April 4, CAH Acquisition Company #5, the company under Empower that previously ran HCH, had attorneys file a motion in the U.S. Bankruptcy Court for the Eastern District of North Carolina, Greenville Division, to have the Hillsboro Community Hospital bankruptcy case transferred from Kansas to North Carolina. The City of Hillsboro, along with the Bank of Hays, and other parties involved in the Hillsboro Community Hospital bankruptcy case, worked together to file a joint objection to the requested transfer to North Carolina. They also sent witnesses and attorneys to North Carolina to appear at the expedited hearing on April 10 to help argue against the transfer request. Bankruptcy Judge Joseph N. Callaway in North Carolina denied the request to transfer the bankruptcy case to North Carolina. This means that the bankruptcy case will remain under the jurisdiction of the U.S. Bankruptcy Court for the District of Kansas, Wichita Division. Read more

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