The City of Prague released the following on Tuesday:

Prague — On January 15, 2019, the City of Prague filed a lawsuit in the Lincoln County District Court against the entities that own and operate Prague Community Hospital. The lawsuit seeks damages for breach of contract, unjust enrichment, eviction and injunctive relief and an accounting. In addition, the lawsuit seeks to have a receiver appointed to immediately assume day-to-day operational control of the hospital.

“The City Council decided to initiate the lawsuit after the current owners missed payroll and employees reported a concerning lack of supplies and equipment available to treat patients and in light of the fact that the lease with the City for the hospital property has expired and no efforts had been made to extend it and get caught up on lease payments by the current owners,” stated Jim Greff, Prague City Manager.

The Mayor of the City of Prague, Cliff Bryant Jr., commented that “The situation at our community hospital is untenable and we want to make every attempt to secure the hospitals long-term future within our City’s financial resources.”

The City of Prague has asked that the Prague Healthcare Authority and Jim Greff, the City Manager, be appointed as the temporary receiver of the hospital. The City also is trying to identify a new owner or management company to assume operational control of the hospital to stabilize its finances and operations.

Watch for updates.