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Court approves transferring control of troubled hospital

June 4, 2019

PINEVILLE, Ky. (AP) — A troubled southeastern Kentucky hospital that was in danger of closing has gotten a reprieve.

News outlets report a bankruptcy court approved a deal Monday that transferred the Southeastern Medical Center in Pineville from its current operator to the hospital’s bankruptcy trustee and the City of Pineville agreed to loan the new, nonprofit operator $300,000 to keep the hospital open for 60 days while the trustee secures a deal with a buyer.

The hospital’s current operator, Pineville Medical Center, Inc., has struggled to keep up with operations and finances. It hasn’t paid employees in about eight weeks and lost its contract last month with the Centers for Medicare and Medicaid Services.

Pineville Medical Center attorney James Irving said the hospital would likely have closed without the court’s action.

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