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Smith County Community Hospital CEO says hospital is not closing amid budget worries

Smith County Board of Supervisors · July 10, 2026
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Summary

David Clark, CEO of Smith County Community Hospital, told the board July 9 the hospital is not planning to close, citing recent capital investments and healthy indicators while warning of pressure from proposed Medicaid cuts that could increase uninsured patients and community demand.

David Clark, chief executive of Smith County Community Hospital, told the Board of Supervisors on July 9 that recent news reports suggesting the hospital might close were inaccurate and that the hospital has no plans to cease operations.

"The short simple answer is no. We are not closing," Clark said, adding that the hospital is open and operating and that recent capital investments — including the start of a robotic‑surgery program earlier in the year that required about $2.5 million in capital — indicate continued plans to serve the community.

Clark said inpatient census and rehab use were up for the season and the emergency room was busier than budgeted. He credited system‑level support and prior experience navigating payment changes for keeping the facility stable, but warned that proposed reductions in Medicaid funding at the state level could increase the number of uninsured residents and strain rural hospitals.

"You can't take $167,000,000,000 away from rural hospitals and expect it not to have an effect," he said, summarizing remarks from a national association presentation that prompted local discussion. Clark asked the board and the public to view a recent legislative study that prompted the coverage and reassured supervisors that the hospital finished the fiscal year ahead of budget.

Board members thanked Clark for the update and for coming to the meeting to answer questions; several noted the importance of local hospital capacity and expressed relief at the clarification.

Next steps: Clark fielded questions and the board encouraged continued monitoring of state budget developments and local health indicators.

Topics: hospital_finance, rural_healthcare