Attorney general investigating 2 Kansas hospitals that abruptly closed

Two Kansas hospitals owned by Kansas City, Mo.-based EmpowerHMS have closed in recent weeks with little notice to employees or local officials, according to KCUR.

Horton (Kan.) Community Hospital, a 25-bed critical access hospital, closed March 12. The hospital, which faced financial challenges for months, was nearly 30 days behind on payroll when it shut down.    

Horton Community Hospital closed just weeks after Oswego (Kan.) Community Hospital abruptly shut down. In a statement announcing the closure, the board said Oswego Community Hospital wasn't bringing in enough revenue to cover payroll and other expenses.  

A spokesperson for Kansas Attorney General Derek Schmidt told KCUR that Horton Community Hospital is being investigated by the attorney general's office. The Kansas attorney general has also launched an investigation into Oswego Community Hospital, according to The Morning Sun.

Until recently, Horton Community Hospital and Oswego Community Hospital had been owned and operated by EmpowerHMS. In January, EmpowerHMS transferred management of 13 of its hospitals to Miami-based iHealthcare, according to KCUR. However, EmpowerHMS is still responsible for fulfilling the hospitals' financial obligations, including payroll and other operating expenses.

More articles on healthcare finance:

Trinity Health posts $301M loss in first half of fiscal year
Private equity pushes into healthcare: 11 latest deals
Financial troubles force Oklahoma hospital to hold food drives to feed patients

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars