On Monday night the Eureka Springs Hospital Commission met for its regular monthly meeting and unanimously voted to file a lawsuit against Allegiance, the organization leasing the hospital. After several attempts to communicate with Allegiance regarding more than one breach of contract with little or no resolution, commissioners not only requested to terminate the lease agreement, but decided to follow the next step of action in accordance to its legal counsel and is filing for a declaratory judgment.
Chair Dr. John House said that the hospital’s attorneys have spoken with the attorneys for Allegiance who indicated that Allegiance would like to exit the lease agreement by the end of the month, but no written plan is in place, leaving the commission concerned of when it may need to step into an administrative and operational role.
House stated that Allegiance cannot legally abandon the hospital without due course, but the commission is preparing for that possibility. A unanimous vote was made to immediately solicit hospital consultants to help navigate the operational transition from Allegiance to a new organization.
Commissioners hope to have a selection of qualified consultants to choose from at a specially scheduled workshop just under three weeks away, 1 p.m. Saturday, Nov. 9 in the ECHO clinic.
What to do with real property
Commissioners also discussed the vacant Brown house adjacent to the hospital. The property was originally purchased with the intent to demolish it and use the real property for future hospital expansion. The commission discussed a variety of options such as 1) accepting bids for the building alone if someone would like to move it off the property, 2) let it sit vacant, 3) rent it out or hire a management company to rent it out, or 4) acquire bids for demolition. Commissioners decided to form an exploratory subcommittee in the next month to investigate possible uses for the building and to obtain legal advice.
The house on Norris Street was also a topic of discussion, as the commission previously voted to ask city council to give operational control back to the hospital for medical uses, but council had already decided to pursue bids for purchase.
The first bid opening, solicited locally, brought in one bid for under $50,000 which council refused. The second bid opening, solicited more broadly, brought in no bids. The Hospital Commission discussed these happenings and decided unanimously to write a letter to council to officially request operational control of the house.
The next regular meeting is scheduled for Monday, Nov. 18 at 6 p.m. at ECHO clinic.