BIRMINGHAM, Alabama -- Answering new allegations against it, Birmingham Health Care denied it misappropriated funds from a Tuskegee community health center, according to its latest court filing.

The Birmingham community health center also reiterated its denials on a series of other allegations and pointed the finger back at the Tuskegee operation, Central Alabama Comprehensive Health (CACH), for any damages incurred in the dispute stemming from a prior business relationship.

CACH's "damages, if any, are the direct result of its own acts, negligence and/or omissions," according to the Birmingham Health Care (BHC) filing this week in Jefferson County Circuit Court.

CACH sued Birmingham Health Care (BHC) Feb. 6, 2012, initially for conversion and breach of contract in a case dating back to 2011 when CACH ended a $225,000 per year management contract with BHC. CACH claimed BHC withheld records CACH says are essential to its financial viability and its ability to comply with federal regulations.

CACH and BHC are both federally qualified health centers which give them the ability to receive higher Medicaid reimbursements and access to other federal funding to serve the poor and homeless.

After a series of audits, which included depositions of past and present BHC officials, CACH added "misappropriation of funds" to the lawsuit.

"BHC and its agents and employees misappropriated CACH's grant funds and other monies for their own use," CACH alleged in its amended complaint filed May 23.

CACH is asking for compensatory and punitive damages and attorney's fees and costs, but did not put a dollar figure on that amount.

Besides denying the misappropriation allegation in the latest filing, BHC also denied all other allegations, including conversion, breach of contract and negligence.

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Birmingham Health Care denies it misappropriated funds