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Citrus County Hospital Board set to wind down under local bill; assets slated to transfer to county

November 01, 2025 | Citrus County, Florida


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Citrus County Hospital Board set to wind down under local bill; assets slated to transfer to county
State Representative Groh read a local bill at a Citrus County delegation meeting that would dissolve the Citrus County Hospital Board and transfer its assets and liabilities to the Board of County Commissioners, with a scheduled dissolution effective Oct. 1, 2026. The bill requires the district to "wind down its affairs" and adopt a dissolution plan by Sept. 30, 2026, while allowing an existing irrevocable community trust or foundation to continue operating.

The proposal matters locally because hospital board trustees told the meeting the district has stabilized financially and holds more than $12,000,000 in assets that could be used for ongoing community health investments. "The Citrus County Hospital Board has over 12,000,000 right at plus or minus," said Mister Grant, speaking for board leadership. Trustees said HCA has invested more than $100 million in capital improvements at the hospital under a long-term lease and that negotiations with HCA over property and service commitments remain ongoing.

Hospital board trustees described a multi-year effort to resolve litigation, restore creditworthiness and remove taxing authority tied to the district. Trustees said the board has engaged outside counsel and will continue negotiations with HCA regarding the lease, potential federal grant opportunities and the disposition of hospital-campus parcels. The board also told the meeting it has provided a letter of intent to local partners describing plans for site improvements and potential federal funding.

County Commissioner Holly Davis and members of the Citrus County Community Charitable Foundation said any remaining funds should sustain community health programs in perpetuity. "I would hope that we could all agree that the best use of the funds ... is to use what those funds gain every year to invest in our community for the better of the health of our community," Commissioner Davis said.

Representative Groh read the bill into the record and then opened the measure to public comment and discussion with hospital trustees. After discussion, Representative Groh stated, "I approve it," called for a voice vote and recorded an "aye" to move the bill forward in the local filing process.

Next steps described by trustees and county staff include drafting a detailed dissolution plan, finalizing negotiations with HCA, and aligning the county and charitable foundation on how transferred assets and investment returns would be used going forward. Trustees and county leaders said they intend to retain a portion of funds in an endowed structure to support local healthcare workforce and community programs.

The local bill text read at the meeting requires the hospital board to satisfy liabilities before distributing remaining assets and allows the irrevocable community trust created under prior special law to continue operating. The measure as read also repeals chapters enacted by prior local laws and specifies the October 1, 2026 effective date for dissolution and transfers.

Officials said additional public meetings and legal steps are expected as the board finalizes the dissolution plan and as county officials evaluate the operational and fiscal implications of receiving the district's assets and liabilities.

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