By Chris Post / Editor-In-Chief

Less than a week after a failed sale raised questions about the future of Fitzgibbon Hospital, new owners have taken control of the facility and say the hospital, nursing home and rural health clinics will remain open.

American Medical Administrators announced Wednesday that the transition of Fitzgibbon Hospital and its related healthcare operations to new ownership and management has been completed. AMA will manage the healthcare operations following a sale approved by the U.S. Bankruptcy Court for the Western District of Missouri.

Fitzgibbon Hospital, The Living Center skilled nursing facility and Fitzgibbon-operated rural health clinics will remain open during the transition, according to the announcement.

“Healthcare is vital to the well-being of every community, and our immediate priority is ensuring continuity of care while we work alongside the Fitzgibbon team to evaluate operations and establish a sustainable path forward,” AMA CEO Nick DeStefane said.

The announcement brings at least a temporary resolution to a tumultuous several weeks for the century-old Marshall hospital.

Fitzgibbon filed for Chapter 11 bankruptcy protection April 21 after years of financial losses. Hospital officials blamed rising operating costs, workforce shortages and reimbursement rates from Medicare, Medicaid and commercial insurers that failed to cover the cost of providing care.

The bankruptcy was intended to allow Fitzgibbon to remain open while completing a sale.

The court approved the sale of the hospital’s assets to Strawberry Fields REIT and its affiliates Aug. 10, with AMA expected to operate the hospital and skilled nursing facility following the sale. The transaction was originally scheduled to close Aug. 14. It didn’t.

Court filings show AMA raised a series of concerns that delayed the transaction. Fitzgibbon maintained it had met its obligations and was prepared to close. The dispute became increasingly serious as August came to an end.

Fitzgibbon eventually filed a lawsuit Sept. 2 against Strawberry Fields and AMA alleging breach of contract, anticipatory breach of contract, tortious interference and promissory estoppel. The hospital asked the bankruptcy court to force the companies to complete the transaction.

According to the complaint, Fitzgibbon had received offers as high as $14.5 million during the sale process but selected the Strawberry Fields and AMA proposal, valued at approximately $10.5 million, in part because of commitments involving continued healthcare services, jobs and participation in Medicare.

Fitzgibbon alleged AMA later concluded the economics of the deal no longer worked and proposed significant changes, including eliminating inpatient services and sharply reducing outpatient care. Those proposals prompted additional concerns about the hospital’s future.

By Sept. 4, Fitzgibbon was publicly acknowledging that the sale had failed to close by an Aug. 31 deadline.

“Fitzgibbon Hospital remains open and continues to provide care to our patients and community,” hospital officials said in a statement at the time. “While the situation remains serious and continues to evolve, there is no established date for a hospital closure.”

Following an emergency hearing Sept. 4, the court continued proceedings involving Fitzgibbon’s bankruptcy financing and established a new deadline of 1 p.m. Sept. 8 for the sale to close. Fitzgibbon was ordered to notify the court by 3 p.m. whether the transaction had been completed.

On Tuesday, Fitzgibbon filed a “Notice regarding Occurrence of Closing Date,” formally notifying the court that the closing had occurred. However, the transition does not necessarily mean every Fitzgibbon service will continue unchanged.

AMA said certain services and operations could be modified as the company evaluates the needs of the facilities, patients and community. The company said its immediate focus will be maintaining continuity of care while evaluating ways to strengthen operations and improve the long-term sustainability of healthcare in the region.

“Fitzgibbon Hospital has a long history of serving this region, and we are committed to preserving access to high-quality healthcare while positioning these operations for long-term stability,” DeStefane said.

That evaluation could be particularly important following years of cost-cutting at Fitzgibbon.

Before filing bankruptcy, the hospital had already eliminated several services as it attempted to reduce expenses. Those cuts included the intensive care unit, inpatient behavioral health services, home health and hospice agencies, chiropractic clinics and two primary care rural health clinics. Fitzgibbon also eliminated some executive positions.

“We are grateful for the dedication shown by the physicians, nurses, caregivers and staff who have served this community through challenging circumstances,” said Fitzgibbon CEO Angy Littrell. “Their commitment to patient care has been extraordinary.”