SOUTH BEND — A judge has set a March 31 auction to see whether anyone will compete with Memorial Hospitals $3 million bid to buy Madison Centers inpatient care assets.
Bidders must exceed Memorials bid by at least $500,000, pay cash, and submit bids by March 25, according to court documents filed Monday.
Memorial plans to continue providing inpatient mental health care in the facilities. It was unclear whether any other bidder would need to make the same pledge.
Michael Lane, Madison Centers court-appointed receiver and acting CEO, declined comment when asked that question Tuesday.
The assets consist of Madison Center’s GeroPsych Institute, Riverside Hospital and Madison Hospital.
St. Joseph Circuit Judge Michael Gotsch is overseeing the sale. In October Madison Centers bondholders, owed more than $50 million that Madison Center borrowed for capital projects, petitioned the court to place Madison Center in receivership because it was unable to repay its debts.
The Indiana attorney general Friday filed a claim for more than $10 million in the receivership case, money it says Madison Center owes the state for bogus Medicaid claims paid in the early 2000s.
Lane also declined comment on whether the state or bondholders will have first claim on any proceeds from the asset sale.
Madison Center is asking a federal judge to dismiss the states false Medicaid claims lawsuit, arguing that the statute of limitations has expired. After attorneys for both sides argued the issue at a hearing Friday, U.S. District Judge Robert L. Miller took the motion under advisement and is expected to issue a ruling within two weeks.
Staff writer Jeff Parrott: email@example.com 574-235-6320