CORYDON, IN (WAVE) - A WAVE 3 Troubleshooter Investigation has netted thousands of dollars for former employees of a southern Indiana hospital. We first exposed the financial mess at Harrison County Hospital in August. Now, people who worked for a wound care clinic that went bankrupt found out a local company is stepping in to help clean up the mess.
When I tracked down Michael Mueller at his $600,000 home in Goshen, the founder of the Wound Professional Services of Kentucky charged out his front door.
"This is a total invasion of my privacy!" Mueller yelled.
But the Troubleshooter Department wanted answers after Harrison County Hospital signed an agreement with Mueller in March 2011 to operate a wound care clinic in its new rehab wing only to see Mueller shut it down 12 months later. When he did it, he stiffed least four employees on their final paychecks.
Michael Stigler, the director of the hospital's consulting firm, saw our story. Now Alliant Management Services in Louisville has sent letters to those employees to let them know Alliant would cover the cost of the pay they are owed, about $3,000 in all.
"This is a way we can contribute to the hospital, which we have had a relationship with for 25 years," said Stigler.
Stigler noted the hospital's attorney's advised it not pay the money to Mueller's former employees because they no longer worked for the hospital.
"We did it to erase some of the ill caused by all this," Stigler said.
Steve Taylor, the CEO of Harrison County Hospital, said they went into business with Mueller without knowing about the financial problems uncovered by the Troubleshooter Department. Bankruptcy filings show Mueller is $4.2 million in debt. Tax liens on his homes in Goshen and Prospect reveal the IRS is breathing down his neck, and Mueller is now accused of fraud by a group of doctors who used to be his former business partners.
Dr. Tim Allen and two others accuse Mueller and his wife of taking a $225,000 loan meant to keep the business afloat and using it to pay off their personal losses. Allen said the bank is now calling that loan, demanding the doctors repay the full amount or risk losing their homes.
Wednesday, June 19 2013 1:46 PM EDT2013-06-19 17:46:12 GMT
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