Knox County Hospital Taken Over by Local Government

Jul 25, 2012

The Knox County judge-executive says stabilizing the county hospital's finances is a priority. Knox County is taking over operation of its hospital over ongoing problems in paying employees and debtors. An agreement signed in 2006 put the county fiscal court in charge and Judge-Executive J.M. Hall said local government has inherited a financial mess.

Hall told WYMT-TV in Hazard the county must make payroll for hospital workers or would be in contempt of a bankruptcy court ruling.

Expenses are more than a million dollars a month. Hall said the new CEO is adjusting billing cycles to improve income, but the county is still putting money into hospital operations.

Hall said the goal is to improve the hospital's balance sheet quickly and sell it to another hospital management company.