The board of governors for De Queen, Ark.-based Sevier County Medical Center has declined to renew the contract with hospital President and CEO Lori House, Steve Cole, EdD, chair of the board, confirmed to Becker's.
The decision, made April 3, followed a vote by the Sevier County Quorum Court of no-confidence in Ms. House, whose contract is set to expire May 31, according to the Texarkana Gazette.
"It was just simply not going to be renewed at expiration," Dr. Cole said when asked about the reasoning behind not renewing the three-year agreement.
The quorum court's no-confidence vote took place April 2. On that same day, the quorum court also approved $145,000 in pandemic-era tribal assistance funds to help improve the hospital's financial situation, the Gazette reported.
Sevier County Medical Center, a county-owned and operated critical access hospital, has struggled financially. The hospital had about $2 million on hand around the time it received $6.25 million in federal COVID-19 relief funds in December 2022. Ms. House took the helm of the hospital in June 2021, and a new medical center opened in January 2023. The hospital is currently undergoing a state audit of how the COVID-19 funds were used.
On April 2, SCMC Board of Governors member Mike Branson told the quorum court that the hospital owes approximately $660,000 to vendors; that moving forward, all cost reduction measures are needed; and showed that the hospital's net revenue gap has improved from $700,000 in cash loss in August 2023 to $109,000 in January and $46,000 in February, according to the Gazette.
Dr. Cole said Stacy Dowdy, a long-time SCMC administrator, will be the interim administrator until further notice.
Becker's has attempted to reach Ms. House via email and will update the story if a comment is received.