Nacogdoches Memorial Hospital engages Dykema Law Firm to represent hospital district

Nacogdoches Memorial Hospital engages Dykema Law Firm to represent hospital district

NACOGDOCHES, TX (KTRE) - Nacogdoches Memorial Hospital district is considering filing bankruptcy. On Thursday, the board heard proposals from two law firms.

After the meeting, a unanimous decision was reached to engage national law firm Dykema to represent Nacogdoches County Hospital District during the reorganization process, effective immediately, according to Kim Barton, Community Relations representative for the hospital.

Old and recent debts have escalated the hospital district's financial hardships. Directors were briefed on the situation Tuesday.

"We owe vendors about, between $10-11 million, and most of that is old debts that we inherited," CEO Gary Kendrick said.

He said the bankruptcy doesn't mean they plan to walk away from that debt, but vendors will likely have to wait for their payment if the board approves filing bankruptcy.

"The plan is not to walk away from our vendors, both local and national," Kendrick said. "The goal is to work out what's best for this hospital, so we can satisfy all those debts and continue to move forward."

"We'll pull together as a team," said Linda Lawson, Memorial Hospital's chief nursing officer. We still provide the same quality care that we always have."

"There will be no lock on our door," King said. "We will be here tomorrow, and we will be here 10 years down the road continuing to take care of the people of Nacogdoches."

If the board approves filing for bankruptcy, the lengthy process begins. The hospital district's administration said town hall meetings will follow.

For more information on Nacogdoches Memorial Hospital, click this link.

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