Bankrupt hospital in Pineville sold to regional bank

PINEVILLE, Ky. (WTVQ) – Bankrupt Pineville Community Healthcare in Bell County has been purchased by First State Bank of the Southeast, according to the Lexington Herald-Leader.

The report says the regional bank, that does business in Kentucky and Tennessee, closed on the purchase on September 5, 2019.

The bank bought the 120-bed facility for $2.6 million, plus a 5-percent buyer’s premium, for a total cost of nearly $2.8 million, according to the report.

The bank will not run the hospital, but will likely lease it to a non-profit group of local stakeholders who took over the facility when the bankruptcy proceedings began, according to the report.

There is still a class action lawsuit pending in connection to the hospital.  In June, some current and former employees sued former owners, management and the hospital board for regularly deducting money from their paychecks for health care coverage they claim they never received, according to the report.