Texas Court Asked to Appoint Receiver for Houston ASC

A limited partner in a Houston ASC, The Palladium for Surgery – Houston, has filed a complaint in Harris County District Court asking a judge to appoint a receiver for the financially struggling ASC, according to court documents.

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The partner, Brad Kovnat, filed the complaint against Northstar Healthcare, which holds a majority ownership stake in the ASC, alleging the publicly-traded company has allowed the center’s finances to deteriorate since a change in management in 2008.

The plaintiff alleges net income dropped drastically in 2008 and 2009, and that a receiver is necessary to resyndicate the partnership and move the company forward, says his attorney, Craig Smyser, a partner with the law firm Smyser Kaplan & Veselka in Houston.

Northstar Healthcare owns and operates two ASCs in Houston, manages one pain management facility there, and manages a third ASC in Dallas. Attempts to reach representatives of the company were not successful.

Learn more about the complaint.

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