Baxter Health to take over management of Fulton County Hospital

The Fulton County Quorum Court held a special meeting to discuss the future of the Fulton County Hospital (FCH) Aug. 1.

Fulton County Judge Kenneth Crow spoke to the court introducing a number of individuals present to speak including Sen. Scott Flippo, Rep. Stetson Painter, Rep. Trey Steimel, Baxter Administrator and CEO Ron Peterson and Director of Business Development Brian Barnett. Many members of the Fulton County Hosptial Board were also present. 

“The purpose of this meeting is to understand what is being proposed which is a management agreement between Fulton County Hosptial and Baxter Regional… and Hopefully pass a resolution in support of the management agreement with Baxter,” Crow said.

He then turned the floor over to Sen. Flippo who told the court he had been in conversation with Governor Sarah Huckabee Sanders, who had the authority to write a letter requesting expenditure of federal funds to support hospitals in the state, but in the case of FCH, she would not write a letter to that effect if an alternative was on the table.

“I heard from the governor’s office last week and was authorized to go to the Fulton County Hospital Board Friday morning (July 28) to make it known the governor would not be requesting a letter requesting funds should Fulton County Hospital not be supportive of a merger proposition or management agreement if that was on the table. And it was,” Flippo said.

Knowing an offer was on the table, as Flippo and others had been in conversation with the leadership team at Baxter Health, the presentation was necessary to be made to the quorum court.

“Her position has been from day one, a wholesale transformational changes and talking about hospitals and what they’re doing 10 years after her administration ends. She doesn’t want a recurring conversation about the sustainability. Her whole approach to this has been long term sustainability and viability. She wants a plan for five and 10 years down the road,” Flippo said. “As the senator in Fulton it’s important to me that I can look you in the eyes and know that the absolute plan for the Fulton County Hosptial with Baxter Health’s cooperation is not to only keep it open but to see improvements…”

Flippo said the proposal was not to simply keep the doors open, but to add employees, equipment and services.

“I wouldn’t be here today if I didn’t have full confidence in Mr. Peterson and his leadership team in making sure the Fulton County Hospital not only stays open but shines for the people of Fulton County because this community, and this county has a long-term vested interest in this hospital. You have taxed yourselves to ensure this hospital stays open,” Flippo said.

Dr. Chris Cochran was then given the floor to speak 

“I have been working with Fulton County Hosptial in an ancillary role since 2012 and we’ve been quite stagnant through that period of time, but through the hard work we have expanded without any applicable help, our role there to basically double it, but that is coming to an end. The hospital has been keeping it’s head above water for a lot of years,” Cochran said.

He went on to explain that there has been an influx of care providers serving in some capacity at the FCH, and the majority of providers were coming over from Baxter Health while maintaining their careers at Baxter.

“If we have an influx of talent, management and money, we are amazingly still open, but we are that close to putting chains on the door,” Cochran said while demonstrating a slim margin with his hands. “I don’t want to see that happen.”

Cochran noted there has been equipment and manpower donated by Baxter Health with no contractual agreement but has thus far been in good faith.

He stated some of the equipment and opportunity for expansion has gone unrealized due to lack of manpower and money.

Cochran said there are two brand new operating rooms at the hospital with one going unused and currently used for storage, something he noted as a missed opportunity.

“There are a lot of providers who will come, but it’s a matter of real estate, where can they practice,” Cochran said.

He also stated procedures are backed up for his patients through November.

“This is not good healthcare for Fulton County, we need better than that,” Cochran said.

Judge Crow then asked to hear from a member of the FCH Board who stated the hospital was shorthanded, and although some $3 million had been attained during Covid, it was simply not enough.

He stated Fulton County was not going to lose the hospital and the board would remain intact, the plan was just to do more with the existing facility.

“I’ve been working with these gentleman for six months and they’re sincere about what they’re doing. It’s something we need and we’re going to get some money from the state. If we hadn’t have merged, we weren’t going to get it,” he said. “We do need the money. So the resolution you pass here will support the board. We got a good board and it will stay in function (for now) and be there because the group from Baxter will answer to them each month and after six month we will look at a long-term lease program. This is something needed and has been needed for a long time for the hospital.”

Peterson then spoke to the court stating that this was not the first time the FCH Board had approached Baxter about taking over management of the hospital.

“We were excited and came and made a presentation but lost to Ozarks Medical In West Plains came in and managed the hospital and I don’t think that lasted very long. We weren’t chosen at that time, but we still felt it was important to continue to support Fulton County Hosptial in any way that we could. We believe healthcare should be provided as close to home as possible and the type of services provided as close to home as possible. Baxter cannot provide everthing UAMS can, and Fulton County cannot provide what Baxter can,” Peterson said. “We want to provide what we can in Fulton County and to provide as many service as we can and to grow here in Fulton County.”

Peterson said Fulton County was strategic for Baxter in that the influx of patients who already use their services and those who will come as services improve would be beneficial to the health system.

He provided statistics to the board and said without FCH not as many individuals would utilize the services.

Questions were raised regarding existing services such as the retention of the ambulance service.

“We’re going to look at everything and try to figure out how to continue those services and expand services. I know enough to be dangerous to be honest about Fulton County Hospital. I know you have two locations and if you look at the size of the county, you’re going to have to keep locations and you’re going to have to add ambulance service,” Peterson said. “To answer your question, Yes.”

Peterson then provided examples of other expansions and opportunities in the past in which expansions were created through partnerships with regards to ambulance services.

It was noted a letter of intent had already been signed and it was,and the county was not bound until a written contract was in effect.

It was also of note expediency was needed as the FCH was facing a deadline to borrow more funds in order to continue operations.

Judge Crow said the county would continue to retain ownership of the facility and lease it to Baxter with Baxter managing the facility.

Crow said the bond and sales tax was set to expire in 2025 and would likely not present an issue in the future.

A lengthy question and answer session was held with those in attendance at the meeting after which time the quorum court put the resolution to a vote which passed unanimously.