The receivership awarded to the Prague Healthcare Association Monday was affirmed by a federal judge in a hearing Tuesday morning and a district judge in the afternoon.
Cohesive Healthcare Management and Consulting LLC is taking over operations of Prague Community Hospital.
According to Prague City Manager Jim Greff, no acton was taken in the federal hearing regarding charges and the lawsuit against the hospital's former management company CAH Acquisition Company 7 LLC and it's owner HMC/CAH.
Greff also said no action was taken on a lawsuit filed by the hospital employees for wages CAH failed to pay. The judge is expected to make a ruling by the end of the week.
The Healthcare Association held an emergency meeting March 1 in which the Prague City Council approved the contract for Cohesive Management to take over.
Four out of the five council members attended the meeting and approved the contract.
In January, Prague filed the lawsuit against CAH for breach of contract and to force the company to continue normal operations. The city is asking for $39,000 in damages for the contract breach.
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