Mississippi hospital weighs legal action as Merit Health pulls lease

KPC Promise Hospital may be evicted from the sixth floor of Merit Health River Region Hospital in Vicksburg, Miss. But the long-term acute care facility is not going quietly, its CEO says. 

Flowood, Miss.-based Merit Health — under the umbrella of Franklin, Tenn.-based Community Health Systems — terminated the hospital's lease agreement after it failed to "fulfill its contractual obligations" for more than a year, a representative told Becker's

Promise Hospital has been leasing space from Merit Health for about two decades. Kerry Goff, CEO of Promise Hospital, said the two entities had previously worked out a compromise. 

"We were completely shocked, dismayed, and blindsided by this development because Merit Health had previously agreed to a payment schedule for past rent, which included the receipt of a $269,694 payment in April and a scheduled payment of $257,000 for May," Mr. Goff said in a statement shared with Becker's

"Given the agreement that was in place and recent payments that had been made in good faith, this action appears to be nothing more than a profit-motivated money grab at the expense of important healthcare services our community depends on," he continued. 

The hospital is considering "all legal options" and will do "everything possible to save the hospital and preserve access to care," according to Mr. Goff. 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars

>