The operator of Nacogdoches (Texas) Memorial Hospital will no longer be required to fully reimburse Texas Health and Human Services more than $7 million in overpayments by the end of the year, The Daily Sentinel reported Sept. 24.
Nacogdoches County Hospital District will now pay back those funds over three years, according to the report.
The original plan required payments of about $361,000 per month with a $4 million payment due in December for the remainder of the balance, according to the report. The new plan calls for payments of about $190,000 per month over the course of 36 months. No lump sum payment is due at the end.
The district agreed to the original payment plan after being placed on an indefinite payment hold by the agency due to a failure by the hospital's former owner, Lion Star, to repay Medicaid disproportionate share hospital and uncompensated care funds, according to the report.
Lion Star reached an agreement with the Nacogdoches County Hospital District in March to transfer operations of the hospital. Lion Star filed for Chapter 11 bankruptcy in November, with the filing stating it owed more than $50 million to creditors.