October 2019: Sevier County voters overwhelmingly approve a 1-cent sales and use tax increase dedicated to service a $24.2 million bond issue to build, equip and support a new hospital. The county-owned and operated Sevier County Medical Center will replace the old privately owned, financially drowned De Queen Medical Center. The tax will stay in place after the bonds are paid off to provide an ongoing financial foundation for operations and upgrades.
March 2020: Sevier County buys an 18-acre site for the hospital about 3 miles north of De Queen for $184,762. The location is more than 35 miles from the nearest hospital so Sevier County Medical Center can qualify as a certified Medicare critical access hospital. The old hospital site in De Queen can’t be used because it is too close to McCurtain Memorial Hospital in Idabel, Oklahoma, and Howard Memorial Hospital in Nashville.
Nov. 6, 2020: Groundbreaking ceremony is held for the 42,000-SF acute care hospital with Conway’s Nabholz Construction Corp. overseeing construction. The project begins with an estimated construction cost of $16 million to $18 million provided to the county. Disruptions in the supply chain caused by COVID-19 and escalating costs for building materials help double that figure and delay completion.
February 2022: The original substantial completion date of Feb. 24 under the construction contract falls to the wayside. That benchmark won’t be reached until October.
December 2022: An open house is held for the public to tour the completed hospital with 15 inpatient beds and a 10-bed emergency department. Sevier County Medical Center is licensed by the Arkansas Department of Health. The hospital receives $6.25 million in federal funds administered by the state through the American Rescue Plan Act. The restricted-use money can only be used for supplies and equipment, not construction.
Jan. 23, 2023: Sevier County Medical Center opens for business. Outstanding construction debt totals $3 million.
April 2023: The hospital qualifies for Medicare and Medicaid payments.
Aug. 7, 2023: Sevier County Medical Center obtains Critical Access Hospital accreditation, which improves Medicare and Medicaid reimbursement rates.
December 2023: An unhappy construction creditor’s complaint leads to state Sen. Jimmy Hickey, R-Texarkana, requesting an audit of the hospital’s use of federal American Rescue Plan Act funds. Outstanding construction debt stands at about $2.8 million.
March 3, 2024: Gigerich Electrical Inc. of Hot Springs sues Sevier County for unpaid work on the hospital totaling more than $241,000.
April 2024: The hospital’s board of governors votes not to renew the employment contract of CEO Lori House after it expires on May 31. The move follows a unanimous no-confidence vote at a specially called meeting of the Sevier County Quorum Court to discuss the hospital’s dire financial position. On the brink of not making payroll, the hospital staff is reduced from 121 to 82 to cut costs. Sevier County Medical Center receives certification from the Centers for Medicare & Medicaid Services to be a “swing-bed” provider, which allows hospital beds to be used for short-term skilled nursing facility care.
September 2024: Arkansas Legislative Audit confirms the hospital did not misspend any funds received through the American Rescue Plan Act. No funds were spent on construction.
Oct. 17, 2024: Stacy Dowdy, chief nursing officer at the hospital, is named CEO of Sevier County Medical Center after serving as interim CEO. The hospital’s operational debt totals about $4.7 million financed through loans from Farmers Bank & Trust of Magnolia and Horatio State Bank. Efforts are in motion to convert the county-owned facility into a 501(c)(3) nonprofit entity to help cut costs and provide more financial grant opportunities.
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