Closure of Ellwood Medical Center at center of political controversy involving President Joe Biden's brother
ELLWOOD CITY (KDKA) — Congressional Republicans investigating a possible impeachment of President Biden have subpoenaed his son, Hunter, to determine if his overseas business dealings benefited his father, the president.
But their inquiry hits closer to home. They've also subpoenaed the president's brother, James Biden, looking at his business dealings including what role he may have played in the takeover and subsequent closing of the Ellwood City Medical Center. They're looking at whether Joe Biden benefited from those business dealings in our area.
This shuttered hospital in Ellwood City hasn't seen a patient in more than three years, but it's become a focus of the Congressional Investigation into the actions of Joe Biden's brother, James, and a Republican effort to impeach the president.
House Republicans have subpoenaed James Biden to question whether he -- and in turn Joe Biden -- benefited from the mismanagement of a private equity firm that ultimately led to the closure of the town's biggest employer.
"It's a travesty and a mess from the beginning with this company," said Ellwood City Mayor Anthony Court.
According to court records, James Biden was identified as one of several principals in a private equity firm called Americore, which purchased and promised to rejuvenate several rural hospitals, including Ellwood City Medical Center. But as with the others, Americore soon failed to pay its bills and its employees. Elwood City Medical Center closed and fell into bankruptcy.
"We had a beautiful hospital — a working hospital — functioning very well for our community and now we're put in this position. We should not be in this position," Court said.
In bankruptcy documents, its appointed trustee says Americore was "undercapitalized" and "grossly mismanaged" the hospitals -- selling off asset and cutting corners -- eventually leading to the closure of Ellwood City Medical Center by the state. The trustee says for his part, James Biden -- trading on his brother's name -- had promised Americore he could raise the necessary investment capital to run the hospitals..
In court records, the trustee's claim states the company loaned James Biden $600,000 "based upon representations that his last name 'Biden' could 'open doors' and that he could obtain a large investment from the Middle East based on his political connections."
But even though those investors never materialized, Americore began wiring James Biden the money, and House Republicans have focused on one particular check. The company wired James Biden $200,000 on March 1, 2018. Documents obtained by the committee indicate that same day, James Biden cut this check to his brother, Joe, in the same amount. Committee Chairman James Comer has questioned whether the president benefited from his brother's dealings in Ellwood City.
In a video posted on X, the social media platform formerly known as Twitter, Comer says:
"Americore wired James Biden a $200,000 loan to James and Sara Biden and then on the very same day James Biden sent a $200,000 check to the personal bank account of Joe Biden in the form of a loan repayment."
The check from James Biden to Joe Biden says loan repayment, and James Biden's lawyer, Paul J. Fishman, and a White House spokesperson say it had nothing to do with James Biden's business dealings in Ellwood City.
They point to bank records that Joe Biden had loaned his brother $200,000 six weeks before -- also emphasizing that Joe Biden was a private citizen at the time -- neither vice president or president, and in a statement to KDKA Investigates, Fishman said: "Jim Biden has never involved his brother in his business dealings."
Still in Ellwood City, former hospital employees say they're still suffering from Americore's actions.
"It leaves a sour taste in your mouth for sure. It's not right. It's not right what happened here," said former Pharmacy Director Julie Dambach.
As part of the bankruptcy settlement, James Biden agreed to pay back $350,000. But, many of the employees didn't get their final paychecks and weren't made whole in the bankruptcy.
"Every dime helps when you're working everyday, and we're honest hardworking people here in Ellwood and it's a shame," said Andrea McKelvey, a former technician.
With the closure of the hospital, the town has lost its biggest employer and residents now need to drive a half an hour to the nearest emergency room. While its become part of a larger political battle in DC, the borough says it's time to move on.
"We don't want to get involved in Americore and the politics. That's in the past. We're looking forward -- getting a hospital back in there or at least an emergency room or the residents," said Kevin Swogger, the borough manager.