Levi Hospital board votes to wind down inpatient services and form community health foundation

The Levi Hospital board of directors voted on May 8, 2025, to wind down inpatient hospital operations and convert Levi into a community health foundation focused on behavioral health and social-determinants services, hospital legal counsel Linda Johnson told the Hot Springs Board of Directors on July 15.

The decision "did not come from financial distress at all. In fact, 2023 and 2024 were the strongest financial years in Levi's history," Johnson said, adding the board acted to preserve resources for long-term community benefit.

The board and hospital CEO said the physical condition of Levi's 300 Prospect campus made renovation impractical. Johnson cited safety incidents and deferred maintenance; she told the board the estimated cost of a partial remodel had grown to nearly $25,000,000 and "exceeded the book value of the hospital." The board later approved a smaller, $18,000,000 plan focused on behavioral-health services but said uncertainty about future Medicaid reimbursement undermined that path.

Levi CEO Mr. Jeffers told the board the…