Construction Halted at Wadley Regional Medical Center as Steward Health Care Woes Take Effect

Construction work at Wadley Regional Medical Center’s new $227-million campus in Texarkana came to a sudden halt on Thursday as financial troubles at its parent company, Steward Health Care, impacted the project.

Multiple sources confirmed the temporary stop in construction, with the firm in charge of the project, Robins & Morton, sending out a memorandum to all sub-contractors calling for a work stoppage. The memo cited concerns about Steward Healthcare’s ability to fulfill payment obligations under the contract due to a lack of evidence of financing.

While specifics on the financial concerns were not available, the memo stated that the contract could potentially be terminated after 60 days if financing arrangements are not made.

Realtor Landon Huffer, familiar with the project, expressed optimism that the new hospital will eventually be completed despite the current setback.

The stoppage is the latest in a series of events leading Steward Health Care towards bankruptcy, with the company facing unpaid rent, loans, and lawsuits from contractors. Investigations across multiple states have revealed issues with substandard care, closures of hospitals, and questionable business practices.

The future of the project remains uncertain, with Steward Health Care retaining bankruptcy specialists and CPA firm AlixPartners. Mayor Bob Bruggeman of Texarkana expressed uncertainty about the situation and its potential impact on the community.

As the situation unfolds, the fate of the new hospital in Texarkana hangs in the balance, leaving many wondering what comes next for the project and the healthcare system in the region.