Sweden Covenant Health Care System has shut its doors at the Mercy Hospital in the Orleans Parish area of Louisiana after an ongoing investigation, the hospital said.
The closure is expected to take effect on July 1, the facility’s president, Bruce Sperling, told CNN affiliate WWL-TV on Wednesday.
“We will continue to operate in accordance with the current plan, and the facility will continue its operations as normal,” he said.
Sweden Covenant is a hospital for the poor in New York City, New York, according to its website.
The hospital said in a statement that it has been placed in a temporary holding pattern, and that the hospital’s staff and patients will be cared for at Swedish Covenant Health Center, a new facility in the New Orleans area.
“As part of the investigation, we have received numerous reports that may be related to the actions of one or more individuals.
We are investigating all such reports and will take appropriate action if we discover any such allegations,” the hospital statement read.
The Swedish Covenant Hospital, which operates in a nursing home, was built in the mid-1980s as a community health and medical care facility for low-income residents of the Orleans neighborhood.
The facility is also known for its extensive use of telemedicine.
The agency that oversees the federal government’s Medicare and Medicaid programs said in April that it had reached a settlement with Sweden Covenant over allegations of “malpractice and fraud” involving billing and billing practices.
Sweden’s Health Care Authority, the agency that runs Sweden Covenant, was previously fined $7,500 in 2016 for billing Medicare and the Medicaid programs.
In March, the Health Care Commission of New Orleans fined Swedish Covenant $3,000 for failing to pay taxes.
In its statement, the Swedish Covenant hospital said it would continue its work with state and federal authorities in their investigations into alleged malpractice.
Sweden also said it was “very disappointed” in the outcome of the probe and that it would work to improve its billing practices and its processes to “improve quality care and patient safety.”
The Swedish Hospital Association, which represents Sweden Covenant’s physicians, said in an emailed statement that the agency’s management and staff were “working with the state and local governments to address the allegations, and we look forward to returning to work as soon as possible.”
Swedish Covenant said in its statement that its board has been notified of the closure and is reviewing the matter.