Illinois Hospitals Go on Bypass Amid Payroll Delays, CEO Lawsuits
Two Illinois hospitals owned by Reno-based American Healthcare Systems, Gateway Regional Medical Center in Granite City and Vista East Medical Center in Waukegan, went on ambulance bypass status amid payroll delays, the Illinois Department of Public Health said in a Nov. 9 statement. Gateway funded its payroll Nov. 6, and Vista East's payroll was being processed as of Nov. 9 evening, according to AHS COO Evelina Sarian. The delays follow a $1 million personal loan AHS founder and CEO Mike Sarian and his wife provided in August to cover payroll for more than 600 Gateway employees; Dr. Sarian faces lawsuits in Nevada and Florida alleging he diverted hospital funds for personal use, and AHS shareholders had voted in March to remove him as CEO over fraud suspicions, though a judge ruled he could remain. IDPH said it cannot take over management of the private hospitals but is coordinating with area hospitals on possible patient transfers and with CMS on oversight, and affected employees have one year to file a wage complaint with the state labor department.