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Settlement proposed for former Noble Health employees in company’s bankruptcy case

Christopher S. Bond Courthouse
Christopher S. Bond Courthouse


A settlement has been proposed for former employees who worked at Nobel Health facilities in Fulton and Mexico.

Nobel Health announced the closure of its hospitals in 2022.  Rural health care has been an issue across Missouri. according to the 2021 Health in Rural Missouri report, there are 55 rural counties in Missouri without a hospital.

An in-person court date for bankruptcy proceedings will be held May 9 at the Christopher S. Bond Courthouse in Jefferson City. The proposal was signed and dated on March 27 by Todd C. Werts, the counsel for the class of former employees, and March 28 for Noble Health’s lawyer Ronald Weiss and Howard Borin, who is listed as counsel for “other obligated parties.” The file was entered into records on Wednesday.

According to court documents, $2 million would be split evenly between the two locations. A total of $1 million would be spent for unpaid straight time wages, minimum wages, overtime, holiday pay, employee benefits, interest, liquidated damages and attorney fees for former employees at the Callaway County hospital, while the other half for the same stipulations would go to the former Audrain County employees.

Former employees who qualify include those who worked for the Noble Health Medical system in 2021 and 2022.

The first $500,000 pay will be made to those who worked at the Fulton hospital 15 days after the Chapter 11 plan takes effect. The next $500,000 payment would go to Audrain County employees 90 days after the effective date.

The final two payments would be made after one full year when Chapter 11 takes effect, or 180 days after a hospital opens in the area.

The Callaway County portion of the settlement was described in Noble Health’s amended plan of reorganization for that was submitted on Wednesday. The plan states that the secured claim of $572,000 to Lead Bank, four payments of $600 would be made to Phil Hagedorn and general unsecured claims with liens on real estate to Lead Bank. Noble Health would pay unsecured creditors their “pro rata” share of $50,000.

A full proposed claims/payment schedule can be found below:

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Ryan Shiner


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