Douglas hospital files for bankruptcy

The Douglas hospital is now in bankruptcy reorganization.

Community Healthcare of Douglas Inc. operates the Southeast Arizona Medical Center in the border community.

The president of Community Healthcare - Jim Riley - announced the bankruptcy filing Friday and informed employees at the health-care facility.

The Sierra Vista Regional Health Center has been managing the Douglas facility under an agreement for more than 18 months.

Officials say the health center will continue to provide support until the federal court in Tucson decides which bidder will take over operations at SAMC.

The Sierra Vista Herald says SVRHC has paid nearly $1 million in loans to the Douglas hospital. They will be repaid when a new company is chosen to operate the facility.

College is subject of federal investigation

PHOENIX - The Maricopa County Community College District says it is cooperating with a federal investigation of a college's administration of a federally funded program that pays students for community service work.

The Arizona Republic reports that the fraud and theft investigation includes looking into whether students were paid for community service when they were actually doing other work or being paid for work performed before they enrolled in the program.

Court documents submitted by agents to obtain a search warrant allege that college officials falsified student timesheets and fraudulently certified ineligible people for payment under Project Ayuda of the AmeriCorps Program.

District spokesman Tom Gariepy says the district is cooperating with the federal investigation and conducted its own internal investigation.

The Associated Press