BULLHEAD CITY — The Flagstaff-based company North Country HealthCare Inc. closed its Bullhead City location on December 23 following a tumultuous financial year. The company filed for bankruptcy on December 19 and has entered into an acquisition agreement by El Rio Health, a healthcare company based in Tucson.
North Country Healthcare is a nonprofit based in Flagstaff that operates 13 clinical sites and two mobile clinics in ten other communities in northern Arizona. Last month, North Country CEO Anne Newland informed employees that El Rio Health submitted a written offer to acquire certain North Country assets.
Prior to the bankruptcy filing and acquisition agreement, North Country was sued by its employees, who allege that the company was taking healthcare premium payments from them without paying the provider, Blue Cross Blue Shield.
Twelve employees filed the lawsuit on October 30. Blue Cross Blue Shield told the Arizona Daily Sun that they have not been paid by North Country since at least July.
The lawsuit says the company “exposed its employees to significant liability for medical expenses,” and that it violated the federal Employee Retirement Income Security Act.
On November 21, an amended complaint was filed on behalf of the employees. On the following Monday, North Country sent an email to its employees informing them that their healthcare coverage had been terminated.
Just before North Country declared bankruptcy last month, attorneys representing the employees filed an emergency motion on Thursday, December 18 to amend their complaint.
“The level of chaos and dishonesty is astounding,” said one employee who spoke anonymously to the Arizona Daily Sun. “They don’t answer their phone and they no longer respond to an email.”
According to the bankruptcy filings, a virtual creditors’ meeting has been scheduled for January 27 at 2 p.m. Assets are estimated at between $10 million and $50 million.
