By Webster Parish Journal Staff
Louisiana Department of Health has a message for Allegiance Health Management: If you want the federal money you are owed for Medicare and Medicaid, sell four Louisiana hospitals, including Minden Medical Center.
According to MMC CEO Keith Cox, as of Thursday, he can verify that Allegiance Health Management, owned by Rock Bordelon, is divesting itself of Minden Medical Center.
“It’s going to be OK,” Keith Cox said. “It’s sad to think about what our hospital and its staff could be doing if we had the funds.”
Cox said there are parties interested in purchasing MMC.
“But something like a sale this size doesn’t happen over night,” he said. “It could take six months for it to happen, but I don’t doubt it will sell.”
A Thursday afternoon meeting among LDH officials, Allegiance CEO Scott Prouty, Minden Mayor Nick Cox, MMC officials and others did not produce a signed contract from Allegiance, however, Keith Cox said by 9 a.m. today (Friday), it should be in hand for all pertinent parties.
The other hospitals in the agreement are reportedly North Louisiana Medical Center in Ruston, Ville Platte and Eunice.
According to an unnamed source, LDH has reportedly stopped paying the federal portion – presumably Medicaid and Medicare – to Allegiance for Minden Medical Center and is sending what is due them to the IRS for back taxes.
The indebtedness strictly for Minden Medical Center for Federal Tax Liens and Accounts Payable is $40 million and $90 million respectively as of about three weeks ago, the source said.
Mayor Nick Cox said MMC is the community’s local hospital and the staff is good.
“It deserves to be run solidly and have a good future,” he said.
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