CEO pursues takeover of Missouri hospital after operator ousted

The CEO of Fulton (Mo.) Medical Center is trying to buy it after the hospital's management company encountered financial troubles and was dismissed, according to the Fulton Sun.

Fulton Medical Center, owned by Leawood, Kan.-based NueHealth, was facing closure in September 2017. One week before the hospital was slated to shut down, Kansas City, Mo.-based EmpowerHMS entered into an agreement with NueHealth to manage the hospital.

That agreement came to an end earlier this year, when EmpowerHMS ran into significant financial challenges and was ousted as the operator of Fulton Medical Center, according to the report.

After EmpowerHMS was dismissed, Fulton Medical Center CEO Mike Reece put a plan in place to buy the hospital from NueHealth. The sale is pending as Mr. Reece continues to negotiate for a USDA-backed loan to purchase the facility, according to the Fulton Sun.

Mr. Reece told the Fulton Sun that he plans to put the hospital into a real estate investment trust. "That will allow everyone in town to buy a share," he said. "Employees can own a piece. Doctors can own it."

Mr. Reece's goal is to ensure Fulton Medical Center continues to provide care to the local community for many years to come.

"We're trying to set up a structure that will last 100 years," he told the Fulton Sun. "We have to do the right thing to win back patients and doctors."

More articles on healthcare finance:

DC lawmakers vote to close city's only public hospital by 2023
Florida hospital recoups contested Medicaid payments
These 10 physician specialties generate the most revenue for hospitals

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months