November 05, 2024
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ER physicians sue St. Margaret’s for $676,000

Lawsuit alleges breach of contract regarding ER staffing

By Tom Collins
An aerial view of St. Margarets Hospital on Monday, Jan. 23, 2023 in Peru.

St. Margaret’s Health owes its emergency room physicians more than $670,000, according to a court filing. (Scott Anderson)

St. Margaret’s Health owes its emergency room physicians more than $670,000, according to a court filing.

Tuesday, Peru Emergency Physicians, LLP filed a lawsuit in La Salle County County Circuit Court against St. Margaret’s Health-Peru, formerly Illinois Valley Community Hospital.

The lawsuit alleges breach of contract on an agreement first brokered in 2008, and repeatedly amended, for the group to provide emergency room staffing to what was then IVCH.

“(St. Margaret’s) breached its obligations under the contract by failing and refusing to pay for the services rendered by the plaintiff,” reads the complaint filed by St. Louis attorney Michael Schroeder. As of June 1, the balance due is $676,245.23.

Court dates are pending.

An attorney has not yet entered an appearance on behalf of St. Margaret’s. Tim Muntz, chief executive officer for St. Margaret’s, did not immediately reply to an email request for comment.

The filing was not unexpected. Just a week before the Peru hospital was closed in January, St. Margaret’s acknowledged its contract for emergency room services had lapsed for non-payment, forcing St. Margaret’s to close the facility.