Sevier County hospital seeks $4.5M bond

DE QUEEN, Ark. — Administrators of the new Sevier County Medical Center hope to apply for a $4.5 million bond to help cover the hospital’s operating expenses until revenue increases.

The Sevier County Quorum Court and hospital officials have held a public hearing on the issue and are now in a 30-day public comment period before they can apply for the bond.

The loan will fund the hospital until it is able to bill insurance and receive reimbursement for services through Medicare and Medicaid, said Medical Center CEO Lori House. The hospital opened in January.

The hearing was necessary under state law as part of the process regulating when government-owned entities apply for a loan, which in the hospital’s case is called a bond.

Farmers Bank & Trust is offering the $4.5 million line of credit to the hospital.

House told quorum court members the hospital is on its way to meeting the necessary requirements to be able to bill insurance providers. The hospital has already treated nearly 400 patients in its emergency room over the first month of operation, House said. Hospital officials estimate it could take around five years before the hospital nears complete solvency and is able to meet expenses through its own revenue.

Sevier County voters approved a 1% sales tax in a 2019 special election to build the $24 million hospital. The county’s former hospital, which was owned by an out-of-state company, closed in 2019 after a series of financial setbacks.

The hospital is at 960 U.S. Highway 71, De Queen.