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Employees of the Medical Center St. Joseph say they are missing wages after the transition to new owners, Healthcare Systems of America
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Employees of the Medical Center St. Joseph say they are missing wages after the transition to new owners, Healthcare Systems of America

HOUSTON, Texas (KTRK) — The move to new ownership for the St. Joseph in downtown Houston isn’t going too well for some hospital employees, who say they haven’t received their wages or the correct amount they’ve earned.

In May, Steward Health Care, which previously owned St. Joseph, filed for Chapter 11 bankruptcy. In a press releasethe company wrote that one of the main factors included “challenges created by under-reimbursement by government payers as a result of declining reimbursement rates.”

The health system also cited skyrocketing labor costs, increased material and operational costs due to inflation and the ongoing impacts of the COVID-19 pandemic as reasons for filing bankruptcy.

In September, Healthcare Systems of America announced it would take over eight of Steward’s hospitals, including St. Joseph.

“Healthcare Systems of America is dedicated to providing these communities with the quality healthcare they deserve while saving the jobs of the employees who give so much to these hospitals and their patients,” CEO Mike Sarian wrote in September press release.

SEE MORE: St. Joseph to close psychiatric facility in downtown Houston says it’s no longer affordable

A current employee from St. Joseph, who asked that their identities be withheld for fear of retaliation, told ABC13 they have no reason to be concerned at this time.

“We have been told by management that everything will be fine. We will continue to operate as normal and be paid as normal,” the staff member said.

But that’s not what happened on Friday. The employee said they are one of dozens of people who have either not received their wages or have only received a portion of what they are owed. They claim management has yet to provide updates after promising their check would arrive on Monday.

“I was stressed, extremely stressed from the first because I wasn’t prepared for it. I made pre-arrangements for my bills, none of which could be paid,” they told ABC13.

In a statement to ABC13, Faisal Gill, chief legal officer for Healthcare Systems of America, wrote:

Unfortunately, due to a variety of technical issues that developed during the recent management transition from Steward Health Care, this payroll contained a significant number of errors. This is completely unacceptable and we are taking steps to ensure that this never happens again. We are working to resolve these issues as quickly as possible and everyone will receive the exact payroll funds within the next 24 hours. We apologize to everyone affected.”

Staff members also raised concerns about delays in checking prescriptions at their pharmacies, which could affect the quality of patient care. Gill said the situation is also related to transition issues, which will be resolved.

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