Hillsboro and Bank of Hays ask court to expand hospital receiver’s power

By PHYLLIS ZORN

Staff writer

If a company managing the operation of Hillsboro Community Hospital is not appointed to manage its parent company as well, the hospital is in imminent danger of being closed by the state.

That’s the position taken by the city of Hillsboro and mortgage holder Bank of Hays in an emergency motion filed Thursday in district court asking that the receiver, Cohesive Healthcare Management and Consulting, be put in charge of the hospital’s parent company, CAH Acquisition Co #5, HMC/CAH Consolidated Inc.

Cohesive was appointed to operate the hospital Jan. 18 in an emergency ex-parte hearing requested by Hillsboro and Bank of Hays. Now the city and the bank want a ruling that expands Cohesive’s power, including the power to place CAH into voluntary bankruptcy.

The motion gives several reasons why the request should be granted, including:

• The state threatened to revoke the hospital’s license.
• Medicare payment is threatened.
• The hospital lacks a governing body.
• Its parent company is under criminal investigation.
• Other courts are taking action against CAH entities.

For more information, see Wednesday’s edition of Marion County Record.