Mandy
The Pratt Regional Medical Center is behind on its lease payments, according to officials from Pratt County. A formal letter obtained by KSN reveals that the county has issued a Notice of Default and Intent to Terminate Lease to the hospital, signaling serious financial concerns.
More Than $1.58 Million Past Due
Dated January 23, the notice states that the hospital owes over $1.58 million in unpaid rent covering the period from October 2024 through January 2025.
In addition, another $99,000 in rent was scheduled to be due on February 1, pushing the total outstanding amount to more than $1.68 million.
Lease Violations Cited
Beyond missed payments, the county alleges the hospital has failed to meet two key lease requirements:
- A required debt-to-income ratio
- A cash-on-hand provision, which mandates maintaining at least 75 days of average operating expenses in reserve
The county’s legal counsel, David Prelle Eron, explained via email that the notice was sent to “preserve, protect, and enforce the rights of the County under the terms of the Lease.”
County and Hospital in Ongoing Discussions
Eron confirmed that Pratt County officials are currently in discussions with the hospital regarding the issues outlined in the notice.
The county emphasized its desire to keep the facility open and financially stable so it can continue serving residents of Pratt County and surrounding areas for the long term.
Hospital Warns of Severe Financial Strain
In a November letter addressed to the county, the hospital outlined the depth of its financial challenges. It stated that in order to cover rent obligations and outstanding accounts while remaining current, it would require an $8 million donation.
The hospital also disclosed an operating margin of minus 7%, indicating ongoing losses, and mentioned bankruptcy as a possible alternative.
Critical Deadline Approaches
The hospital has been given until February 23 to pay the full outstanding balance of more than $1.68 million. If payment is not made by that date, the lease will be terminated on February 24, potentially jeopardizing hospital operations.
KSN reported that when contacted for comment, Pratt Regional Medical Center declined an interview.
The growing rent dispute between Pratt Regional Medical Center and Pratt County highlights the financial pressures facing rural healthcare facilities. With more than $1.6 million owed, alleged lease violations, and a looming February 23 deadline, the hospital’s future remains uncertain.
While county leaders say they are committed to keeping the hospital operational, the possibility of lease termination or bankruptcy underscores the urgency of reaching a financial resolution that protects both public interests and access to local healthcare.