The owners of a St. Louis hospital face an embezzlement lawsuit while in the midst of negotiating the sale of the hospital. The building contractor overseeing construction projects at the hospital filed the lawsuit, alleging the owners embezzled $1.4 million from the construction fund.
The hospital had set in reserve $6.5 million to fund various construction projects at the hospital. The two managing executives of the owners group requested the funds transfer, stating their financial management firm had approved the transfer for operational costs. However, after the second installment of the requested funds, the building contractor learned that the financial firm did not approve the funds request, and immediately stopped further transfers.
The contractor firm accuses the two executives of using the transferred money for "personal use." The owners deny the allegations made in the lawsuit. Laura Dyrda "St. Louis hospital owner accused of diverting $1.4M of hospital funds" www.beckershospitalreview.com (Nov. 08, 2022).