Shuttered Alabama hospital will settle 'outstanding payroll' soon, mayor says

Efforts to secure Thomasville (Ala.) Regional Medical Center's assets and transition to new ownership are underway, and the ultimate goal is to reopen the 29-bed hospital under new ownership as soon as possible, Thomasville Mayor Sheldon Allison Day said in a Nov. 5 Facebook post.

Six things to know:

1. TRMC halted operations in September due to financial challenges and staff shortages. 

2. Kevin Smoker, broker and owner of Popes Real Estate, was appointed receiver of the facility in October and is responsible for managing all hospital assets. Mr. Smoker has been working with North Avenue Capital, the mortgage holder, to secure and inventory TRMC's assets, including refreshing the 40-acre campus to prepare it for prospective buyers.

3. Bank accounts have been transitioned to North Avenue Capital, which is working with Mr. Smoker to collect outstanding funds and accounts receivable, according to Mr. Day. Funds collected are sufficient to cover unpaid employee wages, and payments will be made pending Circuit Judge Perry Newton's approval.

4. "Mr. Smoker informed the judge there has been a sufficient amount of funds received by TRMC over the last few weeks to cover the outstanding payroll amount owed to employees for time worked prior to the facility abruptly closing," according to Mr. Day. "He recommended the payment be made as soon as possible. The employees were informed of the pending payment via email and will soon receive their payment. Judge Newton concurred with the recommendation and the employees have been notified that they will soon receive payment."

5. Multiple providers from Alabama and outside of the state are interested in acquiring the hospital, which has had several visits from interested parties. 

6. "Everyone is working very hard with the ultimate goal being to transition TRMC to a great new owner who can ensure our hospital has the best opportunity to reach its fullest potential for the long term future," Mr. Day said. "We all have a common goal of seeing new owners in TRMC as soon as possible."



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