Pinnacle Healthcare System filed for reorganization under Chapter 11 on Wednesday, according to court filings.

The company, which owns Pinnacle Regional Hospital in Boonville, owes somewhere between $10 million and $50 million to more than 200 but fewer than 1,000 creditors, according to its bankruptcy petition.

The Boonville hospital suddenly shut its doors Jan. 15, less than two years after Pinnacle Healthcare System bought the facility, according to previous Missourian reporting. The company cited the “economic hardship” of coming into compliance with Missouri Department of Health and Senior Services regulations as the reason it closed, according to a news release from Pinnacle Regional Hospital CEO Joseph Conigliaro.

According to the Boonville Daily News, the compliance issue was related to the facility’s HVAC system, which affected the efficiency of the hospital’s sterilization room.

Lori Davies, the marketing manager for Pinnacle, wrote in a statement that the filings will allow it to restructure its organization.

The hospital, clinics and medical practices at the Overland Park, Kansas, location will remain open throughout the reorganization. Both locations are owned by Douglas Palzer.

The Pinnacle Regional Hospital in Overland Park lost its Medicare certification over two years ago, according to previous reporting by KCUR, a public radio station in Kansas City. The hospital then sued to regain certification, but a federal judge dismissed the suit on procedural grounds .

Two former employees of the Boonville hospital filed a class-action law suit Jan. 15 alleging that their former employer misrepresented the state of their health insurance coverage.

KOMU 8 reported that some employees opted to have portions of their paychecks deducted to pay for their insurance premiums. However, the insurance provider never received payment, and those employees were left without coverage. The hospital had about 160 employees when it closed, according to the Jefferson City News Tribune.

Among the company’s creditors is Great Western Bank, which sued the company for the more than $24 million the bank says it is owed, including interest, late fees and other charges, according to court documents.

The hearing was set for Wednesday.

MU Health Care said in a Thursday news release that it hired several former Pinnacle employees and is looking to secure space in Boonville.

“MU Health Care is committed to working closely with the citizens of Cooper County to ensure access to excellent health care,” Jonathan Curtright, MU Health Care CEO, said in the release. “We are pleased these providers are joining our team. They bring a wealth of knowledge in caring for families at all stages of life as well as deep commitment to the people of Cooper County.”

  • Public Health and Safety reporter, spring 2020 Studying science, health and environmental journalism Reach me at genxfb@mail.missouri.edu, or in the newsroom at 882-5700.

  • Molly Hart is an assistant city editor at the Missourian. She has previously reported on state government. She can be reached at mhart@mail.missouri.edu.

  • I'm the public safety and health editor at the Missourian and a professor in the School of Journalism. I'm experienced in directing investigative projects. Call me at (573) 882-1792 with story tips, ideas or complaints.

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