Some Movement Made In LG Hospital Situation

After weeks of seemingly no movement on the possibility of the hospital reopening in La Grange, there has been some progress in the last few days.

But don’t start thinking about making an appointment any time soon.

On March 7 St. Mark’s Medical Center (SMMC) received a Letter of Intent from Mississippi-based Progressive Health Group (PHG) formally detailing their interest in reopening the hospital, which closed last October because of financial problems.

Friday that Letter of Intent was countersigned by Dudley Piland, St. Mark’s Board Chair.

“Now the clock starts ticking,” Piland said.

PHG’s letter is non-binding, Piland said, and among other things includes a 90 day due diligence period during which time PHG may terminate the agreement to purchase for any reason.

But, if SMMC and PHG reach an agreement on the terms and conditions of the sale of the assets, the agreement would then be submitted to the U.S. Department of Housing and Urban Development (HUD) for their action.

“HUD will have final approval,” Piland said. “While PHG is conducting their due diligence, HUD will continue to prepare for their note sale process in case the asset sale to PHG falls through or is not approved. Based on the current status and path forward, it appears that it will likely be 3 to 4 months before a final determination is made.

“The path to reestablishing services at St. Mark’s does not end there,” Piland said. “If PHG is successful in acquiring the St. Mark’s assets, PHG will need the appropriate licenses from the State and the Centers for Medicare and Medicaid (CMS) number in order to operate. They will also need to staff up to reopen the facility as a rural emergency hospital. If the asset sale to PHG is not finalized, HUD will go through the note sale process. If that happens, there are no guarantees that the facility will be used as a hospital. The new owners can use the property in any manner they determine to be in their best interest.”

There had been one other party interested in re-opening the St. Mark’s facility as a hospital, but that entity has chosen not to submit a letter of interest, Piland said.

So the fate of a hospital re-opening in La Grange now seemingly hinges solely on PHG’s efforts.