Medical services provided to thousands of Cleveland patients would be at risk if a court let a third party take over Northeast Ohio Neighborhood Health Services, the health care system wrote in a recent court filing.
A private equity company filed a lawsuit against the nonprofit health center in U.S. District Court in Cleveland in May. The lender, All Pro Capital Funding, accused NEON of defaulting on an $11 million loan. It asked a federal judge to appoint a receiver, who would have power over NEON’s finances, health care facilities and properties.
NEON admitted in its response that it has more debts than it does assets. Three other companies have also filed lawsuits against NEON in the last five months for failing to pay debts…