The Walker County District Board of Managers approved the subsidy Sept. 26 after receiving a financial update from the hospital’s interim CEO, Michael Morgan.
Huntsville Memorial has struggled for months, and it is reportedly behind on payments to vendors and unable to pay rent.
The hospital has taken steps to improve financially, such as closing its clinic in Madisonville, Texas, laying off employees and seeking partnership opportunities.
However, Mr. Morgan told the district board the hospital continues to face deficits and won’t get a $500,000 uncompensated care payment, according to KBTX-TV.
The district board eventually voted to give the hospital up to $2.9 million until Huntsville Memorial finds a buyer or another solution is determined, the report states.
The hospital is expected to receive the payment starting in November, with conditions.
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