The Nacogdoches (Texas) County Hospital District has approved a $5 million loan to help stabilize operations at Nacogdoches Memorial Hospital, which the district took over in 2024 following the default of the previous operator, ABC affiliate KLTV reported April 21.
The hospital’s former operator, Lion Star, assumed control in 2021 but filed for bankruptcy in November 2023 after a contract dispute with the district. The district officially resumed operations on March 11, 2024.
During an April 15 special board meeting, Nacogdoches Memorial Hospital CEO Rhonda McCabe said the loan will help the hospital cover various operational costs and pay vendors inherited from prior ownership, according to the report.
“This alone will give us a little bit of breathing room so that we can focus more on patient care and doing the things we need to do for our community and not as focused on the financial strain we have day to day,” said Ms. McCab, who previously served as CFO of Nacogdoches Memorial.
Funds from the loan are expected to be available by next week.
Becker’s has reached out to the hospital district and will update this story as more information becomes available.
