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Islands Medical Center president reports pension recovery, Crestwood acquisition plans and staffing, capital upgrades
Summary
At the Feb. 9 work session, Angie Bailey, president of Islands Medical Center, told the Johnson County Commission the hospital’s pension is now about 89% funded after switching trustees to Regions, Crestwood’s planned April 1 closing will add regional bed capacity, and Highlands will receive $634,000 from the Rural Hospital Investment Program next year.
Angie Bailey, president of Islands Medical Center, told the Johnson County Commission on Feb. 9 that the hospital has seen notable financial and operational improvements and outlined several near‑term changes.
Bailey said the hospital’s pension — frozen in 2010 — moved trustees to Regions in August 2025, raising the funded ratio from the mid‑60s to about 89 percent. She said the monthly contribution to the account fell from $76,000 to $26,000 under the new arrangement and that the unfunded liability should be paid off in 12 years. "We feel much more secure," Bailey told commissioners.
Bailey described operational and staffing developments: the system is centralizing certain business offices (a planned consolidation to a building in Arab) and Huntsville has offered pay adjustments for employees who opt to move into centralized roles. She said the hospital is recruiting for OB‑GYN (hoping for one to two hires), a full‑time orthopedist, and an ENT, and noted upcoming RN market adjustments planned for June or July (amounts not yet specified).
On regional capacity, Bailey said she could not disclose deal terms before closing but that Crestwood — described as an 180‑bed facility — is expected to close April 1 and add specialty capacity (cardiology, cardiothoracic surgery, neurology) that should relieve pressure on Huntsville and regional ER boarding. She described Highlands’ staffed bed count as 50 by certificate of need and said the hospital will rely on telehealth specialists in some specialties until recruitment succeeds.
Bailey also summarized capital investments: Huntsville contributed roughly $1.2 million this fiscal year for projects that include a security camera installation (with facial recognition and fall detection), CT room HVAC upgrades, new urology equipment, a generator project, nurse‑call system upgrades, fiber installation, and a blood‑bank refrigerator replacement. She credited volunteers and the hospital foundation with roughly $60,000 each this fiscal year for equipment and program support.
Bailey said the Rural Hospital Investment Program closed for donations recently and that Highlands is set to receive $634,000 next year for capital purchases under that program; she said the program has overall caps and year‑by‑year maximums. When an employee, Misty Perkins, described a positive imaging visit and immediate radiologist feedback, Bailey called it an example of "hometown medicine." Commissioners thanked Bailey and hospital staff for the update.
What to watch Staffing recruitment for OB‑GYN and orthopedics, the Crestwood closing on April 1, and the planned rollout of capital projects (security cameras, generator, nurse‑call upgrade) are near‑term items that the commission and community will likely track.
Closing note Bailey offered to be available to commissioners for follow‑up questions and said hospital leaders aim for transparency as plans progress.
