Mayor’s criticism prompts cease and desist from Arkansas hospital

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Levi Hospital in Hot Springs, Ark., has sent a cease and desist letter to Mayor Pat McCabe, asking him to stop questioning the board’s decision to close the facility and transition into a foundation for community health.

“Your recent public comments regarding the board’s actions are creating confusion in the Hot Springs community, as you are misrepresenting the facts, resulting in false statements being made,” hospital attorney Lynda Johnson wrote in a July 3 letter to Mr. McCabe. Hot Springs City Attorney Brian Albright shared the letter with Becker’s in response to a request made under the Freedom of Information Act.

“The board has thoughtfully and thoroughly considered the action they are taking and firmly believe their decision is in the best interest of the community, as the community foundation will allow the board to continue to provide services to enhance the overall health and well-being of the Hot Springs community,” the letter said.

“We respectfully ask that you refrain from making any additional public comments regarding this matter.”

Mr. Albright said the city will adhere to the letter’s request until it is able to have personal dialogue with Ms. Johnson.

Levi Hospital plans to cease operations as a hospital Aug. 1 after more than 110 years of providing healthcare in Hot Springs.

In a news release, the hospital shared plans to transition into a foundation focused on behavioral health and social determinants of health through community partnerships and grants.

Hospital officials said the decision came amid increasing uncertainty around future healthcare reimbursement, and a review of community needs prompted the hospital to pause plans for new hospital construction and reassess its direction. The hospital had been considering the new construction to address aging infrastructure.

“Our mission is to be a lasting foundation that promotes the health and welfare of our community by addressing the root causes of behavioral health conditions and the social determinants of health that influence them,” Levi Hospital CEO Zane Jeffers, who will join the new foundation board, said in the release. “Transitioning to a foundation allows us to preserve the hospital’s mission while expanding our reach to other factors such as affordable housing and poverty. Psychiatric hospital readmissions are often linked to unstable housing — no matter how exceptional our psychiatric care is, if patients have nowhere to go after discharge, they are more likely to experience another acute mental crisis. By broadening our focus, we hope to help break this cycle and support our patients’ long term well-being.”

Hospital officials said employees will be offered severance packages and career transition services.

Mr. McCabe, who was also the previous administrator of Levi Hospital, has discussed the closing of Levi Hospital publicly at June and July city board meetings.

He told the board he was “stunned” to hear the news and contacted the state health department “because it seemed out of character that, based on what I read [about the decision in the newspaper], that it would lend itself to a closure.”

When he called, he said he found out the hospital remains fully licensed and meets CMS conditions to participate in Medicaid and Medicare programs. He said the hospital also was asked in 2023 to upgrade its fire suppression system to fire prevention code and was given years to do so. Therefore, he questioned the decision to close. 

Hospital spokesperson Libby Harrington told Becker’s the hospital is scheduled to be on the agenda for the next city board meeting July 15 to address the mayor’s comments.

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