The Prague City Council met for regular session March 11, where final arrangements were made to give Cohesive Healthcare Management and Consulting LLC full control of the Prague Community Hospital.
According to City Manager Jim Greff, the City Council and Public Works approved a lease agreement for Cohesive Healthcare giving them access to the hospital.
He also explained the Prague Healthcare Association was previously on the lease but transferred it to Cohesive.
"So the Healthcare Authority is basically assigning their lease to the receiver company which is Cohesive Healthcare Management," Greff said.
Also on the City Council agenda was consideration to transfer the hospital's operation license from the Healthcare Authority to Cohesive.
"We did not actually take action on that because as receiver Cohesive has access to the old license that didn't expire...and they've been in contact with the Health Department and the Health Department said they would reissue that license to Cohesive to operate the hospital," Greff said.
The city manager explained once the license is reissued then the Healthcare Authority's license will be revoked.
The City Council also went into executive session to discuss things concerning the lawsuit against CAH Acquisition Company 7 LLC and it's owner HMC/CAH.
Greff said the federal judge found the company in contempt of court on Friday, March 8 and are requiring that they pay restitution to the employees they failed to pay and to the city for court costs and operational costs. The City Council has 30 days to come up with the exact amount CAH must pay before the judge makes his final ruling, Greff said.
Since taking over operations, Greff said Cohesive has been getting the hospital back to normal.
"Things are going well at the hospital...they've been getting everything in order to run," Greff said. "The lab is being serviced and certified this week and be back up in operation before the end of the week."
Greff also said the X-ray services will also be ready to go by the end of the week.
"Employees got paid last week for the week they worked last week and they'll get paid again this week for the week they're working this week and they said they'll go to a two week schedule," Greff said.
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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