Winona troubles spread

Winona Memorial Hospital's former owner filed for bankruptcy last month, a move that's likely to hinder efforts to recover millions of dollars for the defunct Indianapolis hospital's creditors.

Texas-based Leland Medical Centers Inc. filed Oct. 14, three days after its CEO, Charles Simons, filed for personal bankruptcy, according to bankruptcy court records.

The privately held company, which was created in 1992, once owned a small chain of Texas hospitals with physicians. But Simons acknowledged in a deposition last spring that the company had no remaining assets.

Simons could not be reached for comment last week.

Leland bought Winona-its lone hospital outside Texas-in 2002. Two years later, it sold the Indianapolis hospital to an investment group comprised mostly of Winona doctors. Under Leland, the hospital struggled with supply shortages, financial losses and a growing pile of creditor lawsuits.

The investment group closed Winona, 3232 N. Meridian St., in September 2004 after creditors filed an involuntary bankruptcy petition against it.