Brownsville General Hospital sued for unpaid bills
A Delaware rehabilitation group is suing Brownsville General Hospital (BGH) for nearly eight months of unpaid bills totaling $230,779.52. In a suit filed earlier this week in U.S. District Court, RehabCare Group Management Services Inc. claimed the hospital, recently renamed Tara Hospital, owes for services provided between Jan. 1 and July 30, 2004.
According to the suit, RehabCare contracted with the hospital to provide intensive inpatient rehabilitation services in the fall of 2000.
They continued with that working relationship through July 30, 2004, when the rehabilitation group terminated its contract with the hospital for non-payment.
The suit indicated that BGH and RehabCare officials conferred “numerous times” over the eight months of missed payments, and hospital officials maintained that they would pay the bill.
The rehabilitation group, in the suit, contends it has not been paid.
BGH officials have “knowingly and willing received or will receive, reimbursement by Medicare for services provided by RehabCare, and has wrongfully or intentionally withheld or will withhold such amounts from RehabCare,” according to the suit.
Earlier this year BGH, which now does business as Tara Hospital, was leased to a group of investors using the name of Brownsville General Hospital Inc. from Brownsville Property Corp. Inc., which technically owns the facility.
The group of investors – Gary Gosai, Dr. Kamlesh Gosai, Dr. Jayesh Gosai, Dr. Anant Gandhi and Dr. Ravindra Mehta – purchased the hospital’s functions, equipment and about $5.6 million of liability. The total deal is estimated at $11 million. The investors will have the option to purchase the building and grounds after three years.
It was unclear if that sale discharged any outstanding debt. The state attorney general’s office handled the sale, and no one from the office returned call to comment.
The case has been assigned to U.S. Magistrate Judge Amy Reynolds Hay.