More information has come to light following the closure of two Amarillo, Texas-based Northwest Texas Healthcare System freestanding EDs in late November due to hospital contractor NES Health's inability to pay employees.
While employees continue to staff the EDs despite lack of pay from NES Health, they recently shared that they could no longer work "if they were not assured of payment for their services from NES," Jason Barrett, CEO of Northwest Texas Healthcare System, said in a Nov. 23 memo shared with Becker's.
NWTHS provided advanced funds to NES for the "express purpose" of paying the physicians and other employees at the freestanding EDs to ensure patient care. However, NES informed both NWTHS and the employees that it would be unable to pay the salaries.
"As a result, NWTHS has formally advised NES that they are in breach of their agreement," Mr. Barrett said. "Further, NWTHS has worked around the clock to initiate engagement of the physicians with a new third-party physician provider entity."
The new contractor that NWTHS selected is recruiting existing providers at the two closed, freestanding EDs to ensure service continuity.
While emergency physician employees have been paid and maintained at NWTHS's main ED, some of the physicians were unwilling to also provide care at the freestanding EDs.
"[W]e have had to temporarily close those facilities while we work through the transition to the new physician entity," Mr. Barrett said. "Once these issues are resolved, our freestanding EDs will be re-opened, resuming normal business operations to serve our community. We expect that to happen in the coming days."
MedPage Today reported in early November that NES Health had experienced a "temporary shortfall in monthly revenue" and was unable to pay its contracted physicians.
Around 30 hospitals nationwide have been affected by pay issues, David Canepa, San Mateo (Calif.) County board of supervisors vice president, said in a Nov. 13 statement shared with Becker's. The affected employees also include ED physicians at Daly City, Calif.-based Seton Medical Center, who have gone unpaid for around two and a half months.
Becker's has reached out to NES Health for comment and will update this story should more information become available.