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Saint Catherine's use of federal dollars possibly under investigation

FOUNTAIN SPRINGS - A broadcast report that the Federal Bureau of Investigation is looking into the use of federal dollars by Saint Catherine Medical Center Fountain Springs could not be confirmed.

According to the report, the investigation involves federal funding through Medicare and Medicaid received by the hospital for services.

Special Agent J.J. Klaver, media coordinator for the FBI's Philadelphia Division, said no information on an investigation has been released by his office.

"We don't ever confirm or deny that there is an ongoing criminal investigation," Klaver, adding that information about any federal investigation could have come from someone who was approached about it.

"As for the media report, it is possible that a person may have been interviewed about the hospital and then gave a tip that they had been questioned. Sometimes the word gets out that the 'Feds' are investigating and people assume it is the FBI," Klaver said.

"It would be in our jurisdiction, but there could be another federal agency that could be investigating. We would usually release information on an investigation only when charges are being filed."

Problems at the hospital came to light in March when the Pennsylvania Department of Health ordered the facility not to admit new patients on March 23 due to "serious deficiencies and violations of applicable regulations that it felt posed a significant threat to the health and safety of the patients at the facility." Within the week, the hospital could no longer accept emergency room patients and could no longer do laboratory work. This was followed with the transfer of all patients to other medical facilities.

It was later learned that the hospital's operations had debts of $5.8 million. The hospital filed for Chapter 11 bankruptcy, which would allow it to reorganize, but after review of records, bankruptcy trustee William G. Schwab recommended the bankruptcy filing be changed to Chapter 7, which involves closing the hospital and liquidating assets to pay a portion of the debt. The closing affected about 150 employees, who lost their jobs and are waiting for up to six weeks of pay they did not receive.

Louis D. Truskowsky, Mahanoy City, served on the hospital board of directors and said he had not been contacted about any federal investigation.

Truskowsky, funeral director with quarters in Mahanoy City and Shenandoah, also is president of the Greater Shenandoah Area Chamber of Commerce. He said the since the hospital is no longer in operation, the board technically also no longer exists.

"I would assume we, as a board, do not exist and we have no function," Truskowsky said, adding that board members could be called on in the future for information about the hospital.

Truskowsky said that since the hospital was allegedly withholding 401K funds, it is possible that federal authorities could be investigating, but he had no knowledge about any investigation.bmk013c;


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