Former workers at a closed Arkansas hospital have filed a lawsuit, claiming administrators withheld part of their pay for insurance but didn’t pay the premiums.
The lawsuit was filed by Denny Sumpter, a West Memphis attorney and former state representative whose mother had worked at the Crittenden Regional Hospital, the Arkansas Democrat-Gazette reported.
The hospital closed on Sept. 8, saying it faced financial troubles caused by a drop in patients and reimbursements. Officials also cited several physician departures and two recent fires that damaged the facility as reasons for the closure.
The lawsuit claims the attorney’s mother was recently billed $28,000 for a medical procedure that her insurance should have paid. She worked for 36 years in the hospital’s medical records division.
The suit names Crittenden Hospital Association, hospital CEO Gene Cashman, association Chairman David Rains and a third-party insurance provider for the hospital as defendants.
A number for Cashman could not be found. Rains said he could not comment on the suit.
Sumpter said he has spoken with about 50 other hospital workers who might seek to be added as plaintiffs in the suit.
“This is a clear case of money being taken from employees but not given to the third-party insurer,” Sumpter said. “Employees are left holding the bag.”
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