Utilities won't be shut off at Kansas hospital

Hillsboro (Kan.) Community Hospital will not have its utilities shut off after all, according to a Hillsboro Free Press report.

The city of Hillsboro said it intended to shut off utilities at the critical access hospital at noon Jan. 11 if bills weren't paid. But a payment of $16,644 was made about a half-hour before the deadline, ensuring the hospital's power would stay on, according to the report. The remaining portion of an estimated $29,000 the hospital owed in unpaid utility bills  reportedly was paid off earlier this week.

"The presently noticed utility shut-off at the hospital has been averted," the city said in a news release obtained by KCUR radio station. "It is the city's ongoing desire to undertake reasonable steps to assist in keeping the hospital open, while also being a good steward of the city's finances and utility resources."

Earlier this month, the Bank of Hays (Kan.) petitioned to foreclose on the hospital after the hospital defaulted on a 2015 construction loan, according to KCUR. The city of Hillsboro is listed as a defendant in the lawsuit.

According to the Hillsboro Free Press, a sale of the property would be necessary for the bank to receive reimbursement.

Hillsboro Community Hospital is managed by Kansas City, Mo.-based EmpowerHMS, which also operates hospitals in Tennessee and Oklahoma. The city reportedly has tried to work with the company to get paid for utilities.

Editor's note: Becker's reached out to EmpowerHMS and will post additional information as it becomes available.


More articles on healthcare finance:

Utilities may be shut off if Kansas hospital fails to pay
S&P: Outlook remains stable for nonprofit hospitals
Arizona's surprise billing law takes effect: 4 things to know


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