02/05/2026
https://www.beckershospitalreview.com/finance/kansas-hospital-challenges-countys-1-6m-lease-default-claim/
The full statement from PRMC Board Chairman, Bill Keller states:
February 5, 2026, Pratt, KS โ Rural hospitals across the country are under extraordinary pressure, and Pratt Regional Medical Center (โPRMCโ) is no exception. Even so, PRMC has not stood still. We have taken deliberate, forward looking steps to strengthen our long term stability and protect access to care for the region.
One year ago, PRMC, with the express endorsement of the County Commission, received support from a USDA grant. At the recommendation of the National Rural Health Association, PRMC retained Stroudwater Associates, one of the nationโs leading rural healthcare financial consultants, to develop a comprehensive short term and long term strategic plan. Stroudwater Associates finalized this report in June. PRMC shared this plan with community partners in August. PRMC has been working on implementing certain parts of the plan since that time and has seen successful results in actions taken. However, some parts of the plan require financial resources which PRMC does not have. Last month, PRMC requested authorization from Pratt County to pledge certain unencumbered assets to secure a loan that would allow us to begin implementing additional parts of that plan.
PRMC believed that the strategic plan and the collateral request provided the County with the information needed to move forward. The County later indicated it wanted additional data. PRMC takes responsibility for that misunderstanding and has been actively preparing the materials requested and remains fully committed to providing complete, accurate information to support an informed decision.
Despite this ongoing progress, an attorney representing the County sent PRMC a letter stating that PRMC is in default in its lease with Pratt County and that the lease will be terminated if PRMC does not cure the points of default in the lease. This action was taken without warning, and PRMC is not in default under the lease. The notice introduces unnecessary disruption at a moment when collaboration, not escalation, is essential to securing the hospitalโs future. PRMC is in direct communication with Pratt County and has been assured that all the County is seeking is the additional financial information requested. Pratt County officials and the PRMC Administration and Board all remain committed to communicating with each other and doing what is needed to make PRMC financially stable and successful.
It is important to emphasize that prior to yesterdayโs news release, discussions between PRMC and the County had been constructive, and significant progress had already been made toward meeting the Countyโs information needs. PRMC remains committed to transparency, partnership, and to safeguarding high quality, local health care for the community we serve.
To continue that commitment, PRMC will hold a public meeting on February 18 to present the current state of the hospital and outline the path forward.
Bill Keller, Chairman
PRMC Board of Directors
Kansas hospital challenges county lease default claim over $1.58M rent credits and seeks to resolve financial dispute with Pratt County.