A Tennessee company has filed a lawsuit seeking $1.7 million from the former Aliquippa Community Hospital, claiming that the facility failed to pay for services provided for setting up a behavioral health unit.

Psychiatric Solutions Inc., of Franklin, Tenn., claims breach of contract related to the 26-bed unit. The two parties entered into a three-year deal in July 2006, in which PSI agreed to assist in managing the unit by hiring a psychiatric director and nursing coordinator, as well as a program director and community education director.

As part of the contract, Aliquippa Community Hospital was to pay a $10,000 monthly fee, according to the lawsuit, as well as a $1,000 penalty per day if there were outstanding management fees.

PSI claims in the lawsuit that it sent the hospital 12 invoices between July 2006 and June 2007 totaling $553,933.33. Of that, only $22,434 in payment was ever received. In June 2007, PSI terminated the contract.

The demand for $1.7 million, includes fees not paid as well as lost profits, attorney costs and interest.

Aliquippa Community Hospital, which was having severe financial problems, was taken over by Commonwealth Medical Center in late 2007.