Harrington approves MOU with Rural Hospital Group to explore reopening emergency facility

The Harrington City Commission voted unanimously to approve a memorandum of understanding with Rural Hospital Group to explore reestablishing an emergency hospital in Harrington.

The MOU, approved pending staff and city-attorney review, would allow the city to identify a parcel of city-owned land for conveyance, help the company apply for a tax abatement under the city's Neighborhood Revitalization Plan, and otherwise assist in permitting and local coordination. The vote followed a presentation by Rural Hospital Group executives and a discussion of next steps. The motion passed 5-0.

Rural Hospital Group CEO Trent Skaggs told commissioners the firm would build a new facility rather than reuse Harrington's old hospital building. "We're actually proposing to build a new facility," Skaggs said. "It's around 7,500 square feet. The facility would have 30 employees. The average salary is around a hundred thousand dollars with benefits." He also said the company was not seeking operational funding from the city: "We're not asking for anything financially from the city. We're not asking the city to be involved in the operations."

Skaggs described the federal rural emergency hospital (REH) model, noting it provides a steady monthly payment to converted facilities and supports 24-hour emergency and limited observation care (under 24 hours) but not inpatient stays longer than 24 hours. He said the company would use a relationship with its nearby Hillsborough hospital for transfers when higher-level care is needed.

City Manager Thatcher (name in packet) and others asked the company to clarify liabilities tied to Harrington's prior hospital cost reports, and to bring a memorandum of understanding that would help the company in discussions with state and federal agencies and lenders. Skaggs said a signed MOU would provide the firm "legitimacy" when seeking answers about outstanding liabilities from Medicare and state health officials.

Commissioners and staff discussed potential sites the city already owns on Commercial Drive and the neighborhood revitalization area. Thatcher recommended adding language to the MOU clarifying that any conveyance would be of a city-owned parcel and subject to staff review. Commissioner comments stressed the need to move carefully through remaining state and federal hurdles while preserving community benefits.

The MOU was brought to a vote after public discussion. The commission authorized the mayor and staff to continue negotiations and to return with final documents after the city attorney's review.

Next steps identified during the meeting included: the city's staff review of potential city-owned sites, a possible memorandum of understanding to support the hospital's lender and state discussions, and further diligence on cost-report liabilities the company would assume if it acquires the hospital designation.