A judge appointed a receiver over a troubled health center on Cleveland’s East Side that could give the third party wide authority over its finances and properties.
Northeast Ohio Neighborhood Health Services, commonly known as NEON, is a nonprofit that offers medical services to patients regardless of their ability to pay. Several years ago, the nonprofit borrowed $11 million from a New Jersey-based private equity real estate company.
The company, All Pro Capital, filed a lawsuit in federal court in May alleging NEON failed to pay back the loan. It asked the judge to appoint a receiver over NEON and its properties, including most of its health clinics, in order to collect the money it’s owed. Receivers can have wide latitude to make decisions over staffing and properties. In this case, the judge hasn’t signed off on the specific duties the third party it appointed will have…