SSM Health Care of Oklahoma, a subsidiary of St. Louis-based SSM Health Care, is reportedly looking to back out of its management agreement with Pauls Valley (Okla.) General Hospital, which filed for bankruptcy earlier this year, according to a report from The Oklahoman.
Pauls Valley General filed for Chapter 9 bankruptcy in March after SSM Health Care of Oklahoma said it no longer wanted to purchase the 64-bed county-owned hospital. The two entities signed a three-year management contract in 2012.
However, in bankruptcy court documents, SSM said it wants to exit the management agreement and transition Pauls Valley General to another owner or operator, according to the report. SSM has also proposed closing Pauls Valley General to build a $20 million urgent care facility in its stead.
The city of Pauls Valley criticized SSM, saying the system knew the municipal hospital was in trouble financially when it agreed to the management contract. "The proposed action being undertaken by SSM is analogous to a pilot seeking to parachute from his airplane full of passengers in the middle of a transatlantic flight," the city said in court documents, obtained by The Oklahoman.
City officials will consider other ways to keep Pauls Valley General open. Chesterfield, Mo.-based Mercy has an Oklahoma City hospital and has reportedly looked into buying the hospital.
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