Hempstead County Quorum Court approves Wadley resolution

HOPE – The Hempstead County Quorum Court met Thursday in a special meeting to discuss a resolution authorizing funding of up to $1 million for Wadley Regional Medical Center in Hope in the case of an emergency. The meeting was called after parent company of Wadley, Steward Health Care, recently filed for Chapter 11 reorganization.

Anna Powell, Hempstead County Economic Development Director and representing the non-profit “Southwest Arkansas Healthcare Authority” and the EDC, gave a brief history of the county having once owned the facility and then selling it. She told the JPs, “The company taking it over had not reinvested into the community.” Powell talked about the need for the hospital with 38% of the local jobs being manufacturing jobs.

Powell stated it was an unusual situation in that the real estate is owned by a company not in bankruptcy while the company owning the license is. Powell stated the deadline for bidding procedures is at the end of this week and the process is very digital and happens very quickly. This hospital is the smallest one run by Steward, which also operates the larger Wadley facility in Texarkana. She stated a request to the state for emergency ARPA funds would be put forth, “and hoping the state would provide the money in a timely fashion.” Powell stated her group didn’t want to deplete the money set aside from the hospital’s previous sale but simply wanted it available if needed. She stated she viewed it as fair to ask the county to support the hospital when it is in need rather than depending upon a corporation to keep it open.

JP Doris Brown asked what would happen if the Court didn’t respond. Powell stated employees with families to feed and rent to pay would look elsewhere for jobs in the event of a failure.

After County Prosecutor Ben Hale explained some of the details of what was being asked for, Hempstead County Treasurer Judy Flowers, stated the money was in a CD, couldn’t be withdrawn immediately and there would be a penalty to pay for its withdrawal.

JP Jesse Henry made a motion to approve the resolution which was seconded. After more discussion about the money needed and the fact that the city had made their resolution dependent on the county doing the same, Pafford Medical Services CEO Jamie Pafford-Gresham stated if the hospital closed, they would apply for $500,000 a year from the Quorum Court due to increased costs of running to Texarkana and Arkadelphia. She talked about the need to make sure the equipment was up to date, and 6-8 months required to make sure the operator has the funds.

The question was raised why there can’t be ten meetings each requesting $100,000. A statement was made that penalties can be forgiven in the case on an emergency. JP Steve Atchley stated a few years ago there had been a similar situation and this is simply preparation. Prosecutor Hale stated it is simply an appropriation.

Judge Crane spoke about the people in the community who would be affected if the hospital was lost. AfteQr a reading of the resolution JPs voted unanimously to approve.

Earlier in the week, the Hope City Board passed a resolution authorizing up to $1 million dollars to be used over ten months to fund hospital services in Hope.  Anna Powell said after the City Board meeting that city money will flow through the EDC to support operations under the hospital license as needed.  Powell stressed the money will be used as needed and may not be needed at all but will be there in case the hospital needs that support.  She said, “during the bankruptcy proceedings with Steward, these resolutions will show that we as a community are prepared to support an operator to keep our healthcare system viable and sustained in our area.” Powell said the bankruptcy court would need to see a potential bidder has the community support.

When asked if there was any potential operator in the running to purchase the hospital, Powell noted they don’t know for sure who all will bid on the hospital license, but they are aware that Pafford Health Systems intends to bid on the hospital license.

Powell said this has been a long process and she expects the situation to remain “fluid” over the next few months.  She said she feels certain “we will know who our healthcare partner is going to be in the next few weeks and then we will move and shift in a way to keep our community healthcare viable.”