Callaway hospital’s owner refutes report of certain closure

The Callaway Community Hospital in Fulton is shown in this Fulton Sun file photo.
The Callaway Community Hospital in Fulton is shown in this Fulton Sun file photo.

Editor's Note: This article rewrites and elaborates on information first reported by the News Tribune and Fulton Sun on Aug. 24, 2022.

For now, the future of Callaway Community Hospital in Fulton remains clouded.

If only for a moment, there were answers Wednesday to questions about the future of the hospital.

The answers weren't encouraging.

The Missouri Department of Health and Senior Services notified the Jefferson City News Tribune early in the morning it had been in contact with Platinum Medical Management, the owner of the hospital, and the group would not be reopening the hospital.

But, Jeff Stone, interim Callaway Community Hospital CEO and representative of Platinum, refuted the morning report Platinum does not intend to reopen the facility.

"I did have a conversation with the Department of Health and Senior Services about the possibility we will not open by the deadline (Sept. 21 -- the end of a suspension of the hospital's medical license)," he said.

Stone said the online early morning article was incomplete.

The health department said Platinum remained in negotiations with a possible buyer for Audrain Community Hospital, which closed at the same time as Callaway, and that Callaway would not reopen. But, Stone argued Platinum is negotiating for the futures of both hospitals.

Stone has not surrendered his license and the hospitals' owners remain in active negotiations with organizations to reopen both hospitals, he said.

Platinum, he said, told the state two weeks ago it was struggling with having the resources to reopen Callaway.

And it asked what steps needed to be taken to assure it could survive.

"My focus, Stone said, "is to find any way possible to provide health services in Callaway County. I want to reopen the emergency room. If we can't have that level of service -- we at least want some level of service."

Platinum continues actively pursuing investments in the hospital, which has generated a lot of interest, he said.

"I am not going to surrender the hospital license until I have to," he said. "There are many opportunities we are pursuing."

Noble Health, a private equity-backed organization, took ownership of the hospitals in March 2021. It closed the hospitals early this year. Over the past several months, it has been transferring stocks to Platinum.

In documentation dated June 22, the company (transitioning from Noble to Platinum) said it anticipated its cessation of patient services to end about 75 days later (Sept. 6, which is the day after Labor Day), although the documentation included a request to extend the suspension of its licensing to 90 days. The state granted the request, and the deadline to end its cessation of patient services for both hospitals is now Sept. 21.

The documents accompanied notification for the state health department that the company was transferring stocks to Platinum Medical Management.

Documents said staff had submitted the Change of Ownership (CHOW), but the hospital was unable to care for patients because of a lack of information technology support, equipment, internet and technology.

As soon as infrastructure is restored (and the DHSS has processed the CHOW), Noble Health/Platinum Health Systems Audrain "will notify the Department of Health and Senior Services immediately to cancel our request for suspension of services and request inspection to open the hospital," documentation stated.

"We anticipate this cessation of patient services will last approximately 75 days from the request start date of June 22, 2022," the request stated. "The Audrain facility is scheduled to come online first, with the Callaway soon after."

Meanwhile, the company was required to provide security and preventative maintenance for the hospitals and any affected campuses, including:

• Buildings and grounds were to remain fully operational to provide upkeep and maintenance to the buildings in the same manner as when they are providing patient care, including use of full-time maintenance staff seven days a week at the Audrain Community Hospital. For the Callaway Community Hospital, buildings and grounds personnel would be in-house on scheduled hours.

• Department directors were to schedule minimal staff to ensure unanticipated needs are identified and addressed.

• Police were to provide additional security.

• Doors were to remain locked.

William Koebel, section administrator for the DHSS Section for Health Standards and Licensure, responded to Noble Health that the 90-day extension was granted, as of June 23.

"Please note that no inpatients shall be housed within the hospital from the initial date of cessation of inpatient services until operation of the hospital is restored with Department of Health and Senior Services' approval," he wrote.

The hospitals' owners are to notify the DHSS no less than 14 days before the resumption of inpatient services that the hospital is ready for review/inspection for approval to reoccupy the hospital with patients.

"We are definitely at-risk of not reopening by that Sept. 21 deadline," Stone said. "We've been fortunate to have been given these extensions by the state and the time to pursue funding sources to reopen."

Stone argued the hospitals "were actually becoming very successful" early in 2022 -- much more so than in previous years. But when pressed on why they still closed in March, he said the challenge was that Noble was unable to sustain both hospitals.

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