Arkansas hospital threatens to pull plug on its management company

The Eureka Springs (Ark.) Hospital Commission is considering axing its management contract with Shreveport, La.-based Allegiance Health Management after a string of issues were left unaddressed at the 12-bed hospital, according to Arkansas Business

Problems at the Eureka Springs Hospital range from maintenance problems at the facility to failure to make on-time payments.

John House, MD, the commission's chairman, said that vendors have complained they aren't being paid, physicians said they were not being paid on time and the building itself has rotting boards and peeling paint.

Dr. House 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. "And at this point, we have lost faith in Allegiance’s ability to do that."

If Allegiance doesn't start to work on on repairs by mid-September, it will be in breach of its contract, triggering a default on its management contract, Michael Merry, a hospital commissioner, told Arkansas Business. A default could end the contract in six months. 

Read the full report here

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