The future of Eureka Springs Hospital, which seemed promising after a change in the facility’s designation was approved in January 2024, was in jeopardy by the end of the year as controversy swirled around the city commission that oversees it, at the same time as the hospital scrambled to respond to a blistering report from the state Department of Health.

The events surrounding the hospital and the Eureka Springs Hospital Commission have been selected as the No. 2 local news story of 2024 by the staff of the Times-Echo.

In January, the hospital announced that it had received approval from the State of Arkansas and Centers for Medicare & Medicaid Services (CMS) to change its designation from a Critical Access Hospital to a Rural Emergency Hospital. The local hospital commission had voted in October 2023 to approve the designation change, which included eliminating the hospital’s long-term inpatient and swing bed services. Under the REH designation, the hospital continues to provide 24-hour emergency room care as well as outpatient services.

In July, Gov. Sarah Huckabee Sanders announced that the hospital would receive more than $2.2 million in state funds as part of the Rural Hospital Sustainability Program.

The most recent controversy surrounding the hospital bubbled to the surface in early November after the hospital commission held a series of special meetings. At the first of those special meetings, on Friday, Nov. 1, the commission voted to terminate chief executive officer Angie Shaw. Three days later, the commission held three separate special meetings at which it voted to fire nursing director Jessica Petrino, elevate human resources director Jodi Edmondson to acting CEO and place chief financial officer Cynthia Asbury on a 60-day Performance Improvement Plan to be monitored by the commission.

Employees speak out

At a city council meeting on Monday, Nov. 11, current and former hospital employees spoke during public comments and letters from others were read into the record. The current and former employees described a “toxic” and “hostile” work environment, with several requesting that chair Kent Turner and vice chair Barbara Dicks be removed from the hospital commission and that Edmondson and Asbury be terminated.

“The management style at ESH, particularly from the CFO, Cynthia Asbury, and HR director, Jodi Edmondson, has become increasingly unprofessional, punitive and authoritarian,” lab technician Rudonya Chrisman wrote in a letter that was read at the council meeting.

Dicks resigns

On Nov. 14, the Times-Echo reported that Turner and Dicks had exchanged text messages on Aug. 15 in which they discussed terminating Shaw — a violation of the Arkansas Freedom of Information Act. Text messages between Turner and Dicks also indicated that they met privately with Asbury to discuss hospital matters, also a FOIA violation. Dicks resigned on Nov. 15 after being asked to do so by Mayor Butch Berry.

On Nov. 21, the Times-Echo reported that Dicks and Asbury had exchanged a series of messages that included references to Asbury’s office being “bugged,” parking in an area outside of view of a camera and “recording.” Among the allegations from current and former hospital employees is that Asbury has worn eyeglasses with recording capabilities and has recorded conversations with employees.

Survey finds ‘deficiencies’

On Nov. 26, an Arkansas Department of Health official notified the hospital administration via letter of multiple “deficiencies” identified during a survey of the hospital by the ADH and the Center for Medicare and Medicaid Services. The letter asked the hospital to submit a plan of correction for each deficiency cited in a survey report and warned that the hospital’s Medicare provider agreement could be terminated if the facility isn’t in compliance by Feb. 5.

The commission hired Little Rock attorney Gabriel Mallard to help craft a response to the survey findings.

Hot mic

On Dec. 2, the commission held a special meeting to approve a letter of engagement with Mallard. The meeting lasted six minutes before being officially adjourned, but the commission continued to discuss hospital business after the adjournment — a violation of the Freedom of Information Act. The additional discussion was recorded, apparently inadvertently.

Among the comments made during the additional discussion was Turner saying he “wouldn’t have a colonoscopy …” after commisison Sharon Deramus asked about outpatient services at the hospital.

Among the deficiencies cited in the survey findings was that the hospital did not have records detailing required cleaning of endoscopy equipment.

Shaw and Petrino filed separate wrongful termination lawsuits on Dec. 6, listing the hospital and the six remaining commissioners as defendants.

House’s proposal

At a commission meeting on Dec. 16, longtime local physician Dr. John House outlined a proposal for his company to take over management of the hospital. House described bringing in a management company as the third of three options for the hospital‚ — the first two being closing the facility or allowing it to “limp along,” which he predicted would result in closure in “less than a year.”

Turner said the hospital commission wants to “entertain” House’s proposal, but only after its plan to correct the deficiencies cited in the survey report is approved. Turner said the hospital had submitted “several drafts” of a plan for corrective action.