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Mexico and Audrain County authorize letter of intent with Boone Health to explore reopening a hospital
Summary
City and county leaders approved a letter of intent giving Boone Health exclusive time to conduct due diligence toward reopening a Medicare‑certified critical access hospital in Mexico, Missouri; Boone Health and public‑health officials said studies show a critical access model is feasible.
Mexico, Missouri — The Mexico City Council and the Audrain County Commission on Oct. 14 approved a letter of intent (LOI) that gives Boone Health and local partners a period of exclusive negotiations and due diligence to explore reopening a Medicare‑certified critical access hospital in Mexico.
Brady Law, president and CEO of Boone Health, told the joint meeting that an LOI creates the framework and the exclusivity necessary for Boone Health to spend on studies and regulatory steps, including the certificate‑of‑need process. "LOIs help define the framework for what we're gonna work towards to get to a definitive agreement," Law said, adding that exclusivity lets the health system commit funds to due diligence and modeling.
Greg Brace of the Audrain County Public Health Department introduced members of the local Board of Health and said the department and board support the LOI. City staff summarized background material: Audrain Hospital (formerly Audrain Medical Center) ceased inpatient operations on March 22, 2022; the city and county purchased the site at a foreclosure sale on July 25, 2024; and a September 2023 feasibility study recommended that a critical access hospital is a viable option for the community.
City manager Bruce (last name not provided) and county officials described a multi‑partner effort that includes Audrain County, the City of Mexico, the Audrain Community Hospital Foundation and CH Allied Services Inc., doing business as Boone Health. The resolution approved by the council authorizes the city manager to sign the LOI; the county commission separately authorized its presiding commissioner to execute the same document.
During a brief question‑and‑answer exchange, a council member asked whether rumors about Boone Health's past cash‑flow difficulties might affect the project. Law acknowledged that the pandemic stressed many health systems but said Boone Health would not have pursued the arrangement if it lacked confidence in sustaining operations long term: "I feel very confident that we have the ability in true partnership that we can make some really great things happen," he said.
The LOI does not bind parties to a final purchase or operating agreement; according to presenters, it is intended to permit exclusive discussions, further financial modeling and environmental and project feasibility studies. City and county officials said the LOI is a step toward turning dirt and restoring an emergency department and related services locally.
What happens next: officials said Boone Health will begin preliminary due diligence and financial modeling and that a definitive written agreement would follow only if negotiations and studies justify it. Both the city and county approved the authorization by recorded voice/roll‑call votes.
