Earlier this month the two parties agreed to separate, with Allegiance vowing to withdraw from the agreement within six months.
The two parties have been at odds over the condition of the 12-bed Arkansas hospital for months.
John House, MD, chairman of the Eureka Springs Hospital Commission, 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.
Allegiance disagreed that the building was in a state of disrepair.
“Allegiance disagrees that it breached the lease, but winning that dispute is not what’s important. Public support and confidence are vital to the viability of a rural hospital,” the hospital operator told KY3.
Allegiance’s lease was not supposed to end until 2022.
More articles on healthcare industry transactions:
CHS to sell 3 hospitals, exit Virginia
Mercy Hospital in Minnesota to join Essentia Health
LifePoint inks $700M deal with Medical Properties Trust
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