Arkansas hospital’s financial crisis puts patients at risk, board says

The board that oversees River Valley Medical Center in Dardanelle, Ark., has asked a federal judge to appoint a receiver to take over operation of the hospital, according to the Arkansas Democrat Gazette.

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River Valley Medical Center, a critical access hospital operated by Shreveport, La.-based Allegiance Health Management, is in “an operational and financial crisis — one that is putting hospital patients at risk,” according to an emergency motion the board filed March 5.

The hospital lacks basic supplies and no longer has a functioning laboratory, and vendors are repossessing lifesaving equipment, according to the court filing.

In addition to seeking a receiver to take over operation of River Valley Medical Center, the board is requesting the court resolve a dispute over the lease agreement between Allegiance and the hospital. The board claims the lease has been terminated, but Allegiance disagrees.

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