WARREN, Ohio – Western Reserve Health Education Inc., which provided medical intern and resident training at the former Trumbull Regional Medical Center, is seeking to block bankrupt Steward Health Care System from obtaining documents and is seeking funds for unpaid services.
According to court documents filed Wednesday in U.S. Bankruptcy Court in Houston, the WRHE seeks protection against Steward, which it claims has breached a funding and services agreement during its bankruptcy process.
Court documents claim the WRHE had a funding agreement with Steward dating back to July 1, 2018, where Steward would reimburse the WRHE for residency programs for interns, residents and fellows.
The court documents claim that after Steward filed for bankruptcy May 6, 2024, it reestablished the funding agreement May 28. Then Steward petitioned the court to reject that funding agreement in late December.
Steward has not paid WRHE since then, despite receiving state and federal funding – including funding from the Centers of Medicare and Ohio Medicaid – the court documents state.
“Said funds are designated to fund WRHE’s services under the funding agreement. Specifically, the Medicare and Medicaid funding [Steward] has received is intended to cover direct and indirect expenses related to educating WRHE’s physician residents,” the court documents state. “Despite receiving these state and federal grant funds, Steward has retained the monies and has refused to reimburse WRHE for any of the services and expenses provided, including, but not limited to, post-petition services.”
The WRHE filed court documents in January stating Steward is in breach of the funding service agreement and seeking the funds. On April 16, Steward filed a motion seeking Intern and Resident Information System data. WRHE contends the data is proprietary and that Steward is not entitled to receive it after breaching the funding service agreement.
Additionally, the WRHE claims Steward violated bankruptcy court rules because it provided it with fewer than 14 days’ notice and is attempting to bypass discovery procedures.
Insight Health System in October acquired the former Trumbull Regional Medical Center in Warren and Hillside Rehabilitation Hospital in Howland. The Trumbull County hospitals, now named Insight Hospital & Medical Center Trumbull and Insight Rehabilitation Hospital Hillside, closed in March over what Insight claims are funding issues with Steward.