A new administrator of the 25-bed Izard Regional Hospital in Calico Rock began work last Monday, more than a year after the hospital was purchased out of bankruptcy.
The administrator, Tony Thompson, didn’t immediately return messages for comment. Thompson replaced Kim Skidmore, who was named CEO of the hospital in 2013.
The new administrator marks the latest change to the hospital, which has struggled financially and made a trip to U.S. Bankruptcy Court.
The hospital, which was known as Izard County Medical Center LLC, and its parent company, Americore Holdings LLC of St. Louis, filed for Chapter 11 bankruptcy protection at the end of 2019.
In June 2022, U.S. Bankruptcy Judge Gregory R. Schaaf for the Eastern District of Kentucky approved Izard County Medical Center’s sale to Izard Regional, led by Dr. Kirnjot Singh.
Under the purchase agreement, Izard Regional Hospital was to assume some of ICMC’s liabilities, which were estimated at at least $1.76 million, with the bulk of that owed to the U.S. Department of Health & Human Services. Those charges were related to liabilities owed to the U.S. Centers for Medicare & Medicaid Services. ICMC’s bankruptcy remains open.
Izard Regional Hospital is part of Boa Vida Healthcare of Crown Point, Indiana, which owns or manages seven hospitals and 29 clinics, according to its website. Boa Vida didn’t return a message seeking comment.
The website said it focuses on hospitals and their communities and involves all stakeholders, from community leaders to payors, to develop a model for providing care long term.
For its fiscal year that ended June 30, 2021, the most recent information available, Community Center of Calico Rock, Izard Regional Hospital’s previous name, reported losing $1.1 million on $5.9 million of patient revenue.
Mismanagement Cited
In 2017, Americore bought several distressed hospitals in underserved communities with the aim of revitalizing them. One of those hospitals was the Izard County hospital, which had been in operation since 1952.
“Unfortunately, Americore’s acquisition of these hospitals had the opposite effect,” according to a July 18 filing from Americore’s Chapter 11 trustee, Carol Fox of Fort Lauderdale, Florida. “Americore was undercapitalized from the beginning. Its management grossly mismanaged the hospitals. …”
After filing for bankruptcy, the Izard County hospital was marketed for nearly two years. Eight potential purchasers entered into nondisclosure agreements to conduct more due diligence, Fox said in the filing. After the completion of the due diligence, Fox said, three parties filed letters of intent. Fox chose Izard Regional Hospital, led by Singh.
Singh, Boa Vida Healthcare’s president, is a retired spine surgeon and entrepreneur who has been involved in startups, developments, partnerships, acquisitions and turnarounds, according to the company’s website.
“He can adapt to changes in business promptly, allowing for continuous, uninterrupted growth,” it said.
The website said that Singh’s focus is on patient care and employee relationships, “believing that happy employees are the key to good, quality patient care.”
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