ST. LOUIS — A bankruptcy judge on Thursday removed the CEO of Americore Holdings, which owns St. Alexius Hospital in south St. Louis, and asked for a trustee to operate the company. A Chapter 11 trustee will be appointed in the coming days.
The move, by Judge Gregory Schaaf, came after an official in the case said that the CEO, Grant White, was under criminal and civil investigation and could not properly manage St. Alexius and other facilities.
The official, Paul Randolph, said that White also lied to the court and isn't trusted by his lenders.
An attorney for Americore, Jim Irving, said during a court hearing that White had recently made personnel changes at St. Alexius. That included the appointment of emergency room director Sonny Saggar as CEO. Russell Kraeger had been CEO.
Irving previously indicated Americore wouldn't oppose a push from Randolph and creditors to install a trustee.
Randolph had said that on Jan. 30, the FBI raided an Americore hospital in Kentucky called the Ellwood City Medical Center. The day before, Randolph said in court documents, the FBI also raided White's residence.
Irving said Thursday that the FBI was investigating "billing fraud," and that White "believes that absolutely no crime" has been committed.
St. Alexius Hospital, with campuses in the city's Gravois Park and Dutchtown neighborhoods, filed Chapter 11 bankruptcy in December following months of legal turmoil involving unpaid bills.
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