Officials at National Century Financial Enterprises, Dublin, Ohio, confirmed that a federal investigation of the bankrupt healthcare finance firm has expanded to involve other agencies. Meanwhile, two of the firm's bankrupt clients -- five-hospital Doctors Community Healthcare Corp., Scottsdale, Ariz., and PhyAmerica Physicians Group, Durham, N.C. -- appear to have found at least temporary financing. The government is investigating whether NCFE and its officers manipulated bond issue funds, committed fraud and looted company resources. The investigation already had been a multistate effort, but sources confirmed that the probe has expanded to involve HHS, the Securities and Exchange Commission and the U.S. attorney's office in Louisville, Ky. This week a federal judge released to Doctors Community $17.1 million in accounts receivable held by NCFE, and the Bush administration promised to help the system's 303-bed Greater Southeast Community Hospital, Washington. Meanwhile, PhyAmerica reached a preliminary agreement for $100 million in debtor-in-possession financing. Read more on this story at www.modernhealthcare.com. -- by Mark Taylor
NCFE probe expands, some clients get help
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