Reopening of Hospital Takes A New Step Forward

Below is information on the recent activity of St. Mark’s Medical Center courtesy of St. Mark’s Board Chair Dudley Piland: St. Mark’s Medical Center (SMMC) Board and Progressive Health Group (PHG) took another step toward reopening the rural emergency hospital (REH) that ceased all operations on October 12, 2023. In a special meeting on Tuesday, June 18, the SMMC Board approved an Amendment to the Purchase and Sales Agreement (PSA) with La Grange Hospital Holding, LLC (LGHH). LGHH is a Texas limited liability company that PHG formed to own and operate the hospital should the purchase of SMMC be finalized. SMMC will now share the amended PSA with the U.S. Department of Housing and Urban Development (HUD) as they have the ultimate decisionmaking authority since they now own the note.

LGHH faces two major hurdles in reopening a REH in the former SMMC facility. The first hurdle is with HUD. It could take several months to determine if HUD will accept the newly proposed terms to purchase the assets securing the note. HUD’s alternative to accepting LGHH’s offer is to include the SMMC property in a note sale as earlier reported. LGHH’s second major hurdle is getting the facility relicensed as an REH which has some potential legislative and regulatory challenges. SMMC was required to forfeit its State licenses and the Center for Medicare and Medicaid Services (CMS) number when it ceased operations last October. PHG is working diligently with state and federal legislators and regulators to chart a path to reopen the facility as a REH.

“While there are still uncertainties to be dealt with, it is clear that PHG remains committed to reopening the REH and providing quality healthcare once again to our community,” Piland said.