Federal judge assigns receiver to help Lauderdale Community Hospital

Special master assigned to help hospital

LAUDERDALE COUNTY, TN (WMC) - Lauderdale Community Hospital is under new management after a federal court hearing Thursday.

The federal court judge says she was flabergasted by the accounting records of the Lauderdale Community Hospital.

About two weeks ago, she appointed a receiver to collect financial records and she was not pleased by what she saw.

She appointed the receiver to get the hospital back on track.

Stone Bank Attorney Jerry Spore is the plaintiff in this case. He says Lauderdale Community Hospital is a financial mess.

Last week, WMC Action News 5 reported there were no doctors in the hospital's emergency room.

However, court records show the situation is even more dire.

Not only did the hospital miss payroll last Friday, the utility bill hasn't been paid since January 4.

The Special Master says the state has threatened to shut down the hospital over fire code violations

There's critical shortages in basic supplies. The hospital is not paying for things like toilet paper.

“Without the willingness of those employees willing to stay there and to do their job for some without pay, the hospital would have closed,” Spore said.

Based on the judge’s ruling the current hospital operators, Empower HMS will have to step aside.

The court-appointed Special Master has now been named the receiver, giving her full authority to make any changes necessary to get the hospital back on track.

“The fact that it can be managed in a way that billings are done in a timely way and the reimbursements come in a timely fashion, give a good chance of surviving,” Spore said.

According to Stone, the receiver does have the option to market the hospital to other operators.

We also heard some reimbursements have been coming in.

The hospital has about $800,000 available in the bank.

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