FAYETTE, AL — DCH Health Care Authority's decades-long operating arrangement with Fayette Medical Center is set to change next year after officials determined the hospital's current lease agreement cannot be renewed in its existing form.
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The Fayette County Hospital Board and DCH announced Friday that the existing lease, which expires Sept. 30, 2027, will not be renewed under its current terms, citing financial pressures associated with providing rural health care.
DCH says Fayette Medical Center will remain open and continue normal operations through the end of the lease.
No staffing or personnel changes are currently planned.
DCH pointed out it has maintained a relationship with Fayette Medical Center since 1984, while the current 20-year lease took effect in October 2007.
"The financial realities of delivering health care, particularly in rural settings, have changed tremendously over the past two decades," DCH President and CEO Katrina Keefer said. "Those realities make the continuation of the existing relationship with Fayette County Hospital Board impossible to maintain."
The announcement comes as rural hospitals across Alabama continue to contend with rising operating costs, reimbursement rates and the financial challenges associated with serving smaller populations.
However, officials stressed that Friday's announcement does not mean Fayette Medical Center is closing.
DCH and the Fayette County Hospital Board said they plan to jointly select an independent third party to assess the financial, legal and operational implications of the lease ending.
That review will also evaluate options for the continued operation of the hospital, clinics and nursing home.
"But make no mistake, DCH is dedicated to working with Fayette leaders to identify a sustainable health care delivery model that will continue to provide high quality care in Fayette County," Keefer said.
Fayette County Hospital Board Chairman Heath Reed said officials are already working toward a new arrangement before the current lease expires.
"We are actively working on a new agreement to move the hospital forward for the future," Reed said. "We are committed to work alongside each other so that this community has a strong path forward for healthcare prior to October 1, 2027."
The announcement gives the two organizations roughly a year to determine what the next operating model for Fayette Medical Center will look like.
Keefer said the hospital's patients and employees will remain the focus during that process.
"Fayette Medical Center is a great hospital because of our caregivers," Keefer said. "Our focus will remain on the patients this hospital serves, and we are committed to spending this next year planning for the next chapter."
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