Sabine Medical Center’s owner, Allegiance Health Management (AHM), issued a press release locally today, shared on social media for SMC and its Express Clinics, explaining its intent to sell four Louisiana hospitals. Sabine Medical Center is not among the facilities identified in the announcement.
The planned sales include:
- Minden Medical Center in Minden
- Northern Louisiana Medical Center in Ruston
- Acadian Medical Center in Eunice
- Mercy Regional Medical Center in Ville Platte
AHM CEO Scott W. Prouty said the company intends to work with the affected communities and potential new owners to ensure a “seamless transition,” with an emphasis on maintaining healthcare services and minimizing disruption for patients, employees and physicians.
The company has not identified prospective buyers or announced a timetable for completing the transactions. The proposed sales remain subject to customary review and approval processes.
AHM is based in Bossier City. Sabine Medical Center describes itself as a 48-bed community hospital in Many. Its website lists three Express Care locations serving Many, Zwolle and Toledo Bend.
The announcement follows months of regional reporting about financial and operational problems at some AHM facilities.
On October 2, the Webster Parish Journal reported that the Louisiana Department of Health was pressing for the sale of four hospitals in connection with federal healthcare reimbursements. The newspaper also reported, citing an unnamed source, that federal payments due to Minden Medical Center were being directed toward IRS obligations. These details are attributed reporting, rather than a publicly documented statement from LDH.
Tax liens and unpaid vendor bills have also been reported. In April, the Webster Parish Journal reported that a federal tax lien of approximately $2.4 million had been filed against the company operating Minden Medical Center for unpaid payroll taxes. The newspaper also reported tax liens involving Acadian Medical Center and Mercy Regional Medical Center. These are historical reports; the amounts should not be read as verified balances owed today.
In a separate April report, the Journal described a lawsuit filed by Storer Services seeking approximately $170,877 for equipment and services at Minden Medical Center, including an HVAC chiller installation. The report also described claims from staffing companies and approximately $120,000 in overdue city utility bills that had subsequently been paid. A lawsuit’s allegations are not the same as a court judgment.
Minden Medical Center CEO Keith Cox acknowledged financial pressures in an April statement. He cited rising operating costs, workforce shortages and reimbursement rates that had not covered the cost of care. Cox said the hospital had fallen behind on assessments required for a state payment program, had addressed that arrearage and was negotiating with supply vendors.
Northern Louisiana Medical Center has faced separate regulatory scrutiny and concerns about supplies and patient care. KNOE reported Tuesday that inspectors cleared the hospital and removed it from the Medicare termination process in September.
There is also an older, separate federal settlement involving AHM and Sabine Medical Center.
On June 5, 2018, the U.S. Department of Justice announced that AHM and four hospitals it owned or operated, including Sabine Medical Center, agreed to pay more than $1.7 million to resolve False Claims Act allegations involving the Inspirations Outpatient Counseling Centers.
The allegations concerned Medicare billing for intensive outpatient psychotherapy that did not meet reimbursement requirements. DOJ cited issues involving medical necessity, individualized treatment plans, documentation of patient progress and services that were primarily recreational rather than therapeutic.
These were civil allegations resolved through settlement. DOJ stated that there had been no determination of liability. AHM has denied wrongdoing and has said it settled to avoid the costs and burden of continued litigation.
For Sabine Parish residents, the immediate point is that Sabine Medical Center and its local clinics are not named in the four-hospital sale announcement.