Struggling Texas hospital sold to new corporation

Nacogdoches (Texas) Memorial Health is being sold to a new entity called Lion Star Nacogdoches Hospital, effective July 1.

The Nacogdoches County Hospital District board of directors reached a purchase and lease agreement with Lion Star to own and operate the hospital, according to a June 22 news release shared with ABC affiliate KTRE 9. Under the agreement, the hospital district will still own and operate the Nacogdoches County Emergency Medical Services.

The hospital has been losing money for at least three years, according to ABC affiliate KLTV 7. In April 2020, the hospital district owed $42 million in bonds, according to Fitch Ratings, an amount Lisa King, president of the hospital district board, said would take at least 20 years to pay off. The board chose a sale to avoid the possibility of closure, Ms. King told KLTV 7.

"The board's goal is to ensure that Memorial will be able to continue to efficiently and effectively accomplish its mission while remaining fiscally healthy," Ms. King said. She added: "We are certain that the infusion of necessary resources, along with the addition of new tools and technology to the long-proven skills and compassion of our staff, will result in touchstone care for our patients."

All eligible employees will be offered positions with Nacogdoches Memorial Health, according to the news release.

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars