Eureka Springs Hospital Commission terminates management company's lease

EUREKA SPRINGS, Ark. -- It has been a tense couple of months between the Eureka Springs Hospital Commission and Allegiance Health Management, who manages the hospital. And now it has come to a head.

“The hospital commission has terminated the lease," said Dr. John House, the chair of the Eureka Springs Hospital Commission.

The issues between the two groups ranged from arguments over whether employees and rent were getting paid on time, to the latest over safety issue concerns in the building, with the commission saying Allegiance breached its lease.

But recently they both came to an agreement to part ways.

“Although the official plan is not in place," House said.

In a statement the lawyer representing Allegiance said, "Allegiance disagrees that it breached the lease, but winning that dispute is not what’s important. Public support and confidence are vital to the viability of a rural hospital. That is why Allegiance has worked so hard for the past 12 years to meet the needs of the community and to continually improve the quality of care available locally at Eureka Springs Hospital. Allegiance wants to ensure that the Hospital remains in the local community and continues to provide high quality hospital services. Allegiance doesn’t want any dispute over the Lease to undermine this goal and are working with the Board to ensure a quick and smooth transition of operations to the Commission."

Allegiance and the commission haven’t reached an agreement yet on when the management team will move out. But the commission plans to move forward in the meantime.

“We are hiring a consultant to come in for the next six months who is going to shepherd this transition through for us. And help us to either find another company to run it or enable us to run it," House said.

The doctors, nurses and staff who work at the hospital should not change even though Allegiance is leaving.

Allegiance Health Management's lease was not supposed to be up until 2022.