They ran the hospital into the ground — and then they got rehired.
The for-profit firm whose executives manage the Interfaith Medical Center in Bedford-Stuyvesant were handed a new $3 million contract to continue running the facility — just days before the hospital filed for bankruptcy, according to a published report.
Since 1991, Kurron Shares of America — led by Corbett Price — ran Interfaith, which filed for bankruptcy last week. Price was also an Interfaith board member, which posed a potential conflict, according to Crain’s New York Business.
A 2011 report by the Cuomo administration singled Interfaith out for “relying heavily on shrinking Medicaid dollars, along with excess borrowing, wasteful spending and mismanagement,” Crain’s reported.
But the contract with Kurron Shares was never terminated — and, in fact, was renewed
Hospital board Chairman Nathan Barotz said the decision to renew was made on the recommendation of bankruptcy lawyers, Crain’s reported.
Kurron kept the hospital out of bankruptcy “a lot longer than if we had less experienced executives,” Barotz said, adding, “If anything, you should congratulate management for taking us as far as we have gotten.”
The renewed contract keeps five Kurron employees in top jobs at Interfaith, including Price, who will become the chief restructuring officer.