Allegiance plans to end its leasing agreement within six months.
The commission that oversees Eureka Springs Hospital said that vendors complained they were being paid, physicians said they were not being paid on time, and the building has rotting boards and peeling paint.
John House, MD, the commission’s chairman, said that Allegiance hasn’t been responsive about the repairs or payment issues.
“Our No. 1 concern, of course, is to make sure that we can offer the best healthcare we possibly can,” Dr. House told Arkansas Business in September. “And at this point, we have lost faith in Allegiance’s ability to do that.”
Allegiance disagreed that the building was in a state of disrepair.
Dr. House said the commission was ready to go to court against Allegiance for violating the terms of its lease.
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