Three Months Into Closure, Hospital Uncertainty Remains

This week marks three months since St. Mark’s Medical Center in La Grange closed it doors.

And a reopening of the financially- troubled La Grange hospital is still uncertain.

“Little has changed to clarify where our hospital is headed,” said Dudley Piland, Chairman of the St. Mark’s Board of Directors. “There are still more questions than answers and St. Mark’s Medical Center (SMMC) has little control or influence on the outcome. One thing for sure is the clock is ticking. SMMC is in default on the HUD (Housing and Urban Development) guaranteed loan and time is running out before the mortgage holder files a claim with HUD. January 17th is the next critical date in that process and that is less than two weeks away. HUD has the ability to extend that deadline and has already extended it once.”

About $13 million is owed on the mortgage of the hospital.

“SMMC continues to assure patient records are preserved,” Piland said. “We are also taking care of the hospital building which is our obligation as long as we have the mortgage. SMMC had projected having funds to cover expenses (other than the mortgage) until mid-February. However, United Healthcare denied approximately $100,000 worth of claims for medical procedures SMMC delivered to patients that have United Healthcare as the Medicare Advantage provider. SMMC has appealed the denial, but the delay in payment has caused more financial distress and potentially shortened the runway to explore Progressive Health Group’s (PHG) promises to reopen the hospital.”

Mississippi-based Progressive Health Group emerged in the final days before St. Mark’s closed its doors back in October expressing interest in taking over management of the hospital. They maintained interest in doing so even after the hospital closed Oct. 12, and members of their management team have met with County Judge Dan Mueller and La Grange Mayor Jan Dockery. But PHG’s progress towards an opening appears to be minimal. The Record has made multiple attempts to interview PHG CEO Quentin Whitwell without success.

“Almost 90 days has passed since St. Mark’s closed and there has been no notable progress in PHG’s potential reopening of St. Mark’s,” Piland said. “PHG has stated they were going to assume the mortgage similar to what Hospital Center of Excellence (a locally-based group that was trying to take over management of the hospital but could not finalize funding to do so) had planned, but PHG has still not filed the Transfer of Physical Assets (TPA). The TPA is the vehicle for a non-profit entity to assume the HUD guaranteed loan and can take months to navigate the process.

“PHG indicated they are working with the State to understand what needs to be done to get the necessary licenses in place to reopen. They have also said they want to understand that prior to filing the TPA. In a call earlier this week PHG told HUD they would file the TPA next week. Should that happen, perhaps HUD will grant another extension.”