Frequently Asked Questions


June 5, 2018


Q: What is happening with Nacogdoches Memorial Health?

A: Times are difficult, especially for rural hospitals like Nacogdoches Memorial Health. We acknowledge that financial issues and a large amount of debt—debt accrued over years—are attached to the hospital. We also need to acknowledge that a strategic resolution can only occur with unity – board, leadership and staff working together.


Q: What has caused NMH’s financial hardships?

  • Old and recent debt
  • Reimbursement cuts from government payers like Medicare and Medicaid
  • Texas did not expand Medicaid
  • Significant shift from inpatient to outpatient care
  • Migration of patients elsewhere for their healthcare


Q: Who is responsible for the hospital?

A: The hospital district Board has ultimate fiscal responsibility for the hospital.

  • Unity among hospital district Board and hospital Board members is critical
  • Hospital staff provide our foundation for the delivery of quality care
  • Community support is paramount


Q: What would restructuring do?

  • Allow us to come to resolution with creditors
  • Create a path forward for continued operations of the hospital
  • Allow the hospital to continue serving the community


Q: Why would we file bankruptcy?

A: Strategically pursuing Bankruptcy—Chapter 9 may seem daunting, yet this bankruptcy filing would allow NMH to lay the foundation for a brighter future.

  • Chapter 9 of the Bankruptcy Code allows municipalities—including public hospitals—to reorganize their debts in the face of insolvency
  • Permits NMH to adjust its debts; as a municipality, NMH is not subject to liquidation
  • This involves implementation of a court-approved plan of adjustment
  • Creates an avenue for NMH to resolve its debt
  • Allows new financing plans to be laid out
  • Navigating the process, especially considering our hospital resources, must be done properly in order to succeed
  • Benefits of bankruptcy:
    • Sets a course for emergence from debt
    • Allows rebuilding of relationships, infrastructure and services
    • Assures that NMH continues its mission to serve its community with quality healthcare services


Q: What happens to me and my job?

A: The hospital will remain open and operational into the future. Our hospital needs you! Our employees are the hospital’s greatest asset. While newspaper reporting and conversations you may hear may be concerning, we want you to know that the Board is actively moving forward with options for our hospital and to best serve our community. We ask that you keep an open mind and focus on caring for patients, as we do everything possible to plan for the future. We appreciate your every-day passion to care for patients and family members of our community. 


Q: How will employees and physicians be kept up-to-date?

A: There will be several opportunities for communication and questions, including:

  • Email updates
  • Departmental meetings
  • Scheduled Town Halls


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