Fort Smith mayor, city director seek more info from Baptist Health about future plans

Fort Smith elected officials are hoping Little Rock-based Baptist Health officials will soon provide details on partially announced plans to alter operations at its Fort Smith hospital campus and end what one Fort Smith director says is an “information vacuum.”

The dilemma facing elected officials and residents in the region revolves around what Baptist officials have said privately and publicly, social media comments made by Baptist employees, and information provided to the press by current and former Baptist employees.

For example, Doug Weeks, Baptist Health executive vice president, chief strategy and innovation officer, spoke March 20 to members of a Fort Smith civic club and several physicians about the hospital’s future. According to those who attended the meeting and meeting minutes, Weeks said the hospital could halt broad hospital operations in its two large towers and use only the newer “Renaissance” building for emergency room and limited surgery center operations.

Baptist Health would not address specifics mentioned by Weeks or those communicated internally to employees, saying only via public statements that the system will spend $20 million at the Fort Smith location “over the next few years,” and that the investment is part of a “transition of its Fort Smith campus.”

“We expect that some of the changes we make will be difficult,” Baptist Health President and CEO Troy Wells said in a statement. “These changes often will overshadow the positive investments we are making at the same time.”

A recent internal memo sent to Baptist Health employees in Fort Smith following media reports suggest that hospital services are not ending.

“The hospital is not closing,” (bold emphasis added by Baptist) noted a statement sent to employees on behalf of Will Rusher, vice president of Practice Plus and CEO of Arkansas Health Group. “In fact, these adjustments are being made with the future in mind to keep the hospital running for many years to come. Baptist Health remains committed to serving the River Valley with a hospital that continues to deliver high quality care.” (See the entire memo at the end of this report.)

Practice Plus is affiliated with Baptist Health and helps the hospital system with physician management and other support services.

According to Baptist Health, there are approximately 700 Fort Smith hospital employees and 169 physicians with active staff privileges. It is unknown if any changes are planned for the Baptist Health hospital and clinic operations in Van Buren.

‘THE WRONG DIRECTION’
Fort Smith Mayor George McGill said any talk of a reduction in care is alarming, and he hopes Baptist and community leaders have time to discuss options.

“The proposed reduction of health care services at Baptist Health Fort Smith is deeply concerning and, if implemented, will have a devastating impact on the the residents of Fort Smith and communities in Western Arkansas,” McGill noted in a statement sent to Talk Business & Politics. “Access to quality health care is not a luxury — it is a necessity. For many families, Baptist Health Fort Smith serves as a critical lifeline, providing essential services that cannot simply be replaced or relocated without serious consequences.”

Continuing, McGill noted, “Reducing care will place increased strain on already stretched health care providers, lengthen wait times, and force patients to travel farther for treatment, often in moments when time matters most. As mayor, I am especially concerned about the disproportionate impact this decision will have on our most vulnerable populations — seniors, low-income families, and those with chronic health conditions — who depend on accessible, local care. Fort Smith is a growing regional hub for health care, and we have worked hard to build a system that meets the needs of our citizens and surrounding communities. This proposal moves us in the wrong direction. I urge Baptist Health leadership to fully consider the long-term consequences of this decision and engage with local stakeholders, medical professionals, and community leaders before taking action. The health and well-being of our citizens must remain the top priority. We stand ready to work collaboratively to find solutions that preserve and strengthen health care access for all who call Fort Smith and Western Arkansas home.”

‘INFORMATION VACUUM’
Fort Smith Director Christina Catsavis publicly called out Baptist Health officials to be more transparent with their plans, and suggested the system has an “expectation” as a tax-exempt nonprofit to invest in the hospital infrastructure. She said the “information vacuum” is causing panic among some of her constituents, especially among the elderly who receive care at Baptist Health.

“Baptist is a tax-exempt nonprofit operating with a mission as critical as any public utility,” Catsavis noted. “With that comes an expectation. You serve the community, and you reinvest back into it. We have never seen a situation like this before, to scale back on core inpatient care at this magnitude is not a small change, this is a change worthy of a public conversation. Especially when we are talking about upending the lives of doctors, nurses, lab techs, janitorial staff, and countless others who keep our hospital running every day. These are people who take care of us, people who live and work here and contribute to the health of our residents and the health of our local economy.”

Catsavis also criticized Baptist Health decision-makers based in Little Rock who receive “huge paychecks” while potentially reducing health care access in Fort Smith.

“Baptist should be fully open with our community about the decisions, the timeline, and the finances behind these major decisions,” Catsavis noted.

In a social media post, Fort Smith Director Neal Martin urged everyone to “pause” the speculation until more can be learned from Baptist.

“Please, let’s all take a second and pause as we assess and have discussions with Baptist,” Martin noted. “I’ve had some communications with them and with other business leaders in our area. I hope to learn more and work with Baptist as we see what the future holds.”

FEDERAL FUNDING PRESSURE
The move by Baptist Health to “transition” its Fort Smith campus should not be a surprise. The hospital historically has had a lower payor mix, meaning more patients who are uninsured or underinsured. Also, the One Big Beautiful Bill Act (OBBBA) passed by Congress and signed by President Donald Trump will reduce Medicaid funding for hospitals. Some estimates suggest that hospitals nationwide may lose more than $24 billion a year, or more than $321 billion over the 10-year life of the federal legislation.

Arkansas is set to receive $208.779 million in 2026 through the Rural Health Transformation Program. The funding came from the OBBBA after concerns were raised about Medicaid cuts on rural hospitals. However, it remains unclear how much of the rural support will be directed to basic health care services.

Bo Ryall, president and CEO of the Arkansas Hospital Association, said systems like Baptist Health face tough decisions.

“Over the last several years, the hospital industry has seen significant increases in the costs of supplies, pharmaceuticals and the workforce, while reimbursements from Medicaid, Medicare and commercial insurance have been relatively flat,” Ryall told Talk Business & Politics. “The pressure of expenses outpacing revenue has prompted a continuous reevaluation by all hospitals of the services offered in a community. We expect this trend to continue as reimbursements remain low and the number of those uninsured increases.”

BAPTIST HEALTH INTERNAL MEMO
Below is a recent email, obtained by Talk Business & Politics, that was sent to some or all Baptist Health employees in Fort Smith.

The following communication is shared on behalf of Will Rusher.

I want to take a moment to address the questions and concern some of you may be hearing in the press or community. It’s important to me that you hear directly from us with clear and factual information. Please use these points when speaking to your team about the coming changes to our hospital.

• The hospital is not closing. In fact, these adjustments are being made with the future in mind to keep the hospital running for many years to come.
• Baptist Health remains committed to serving the River Valley with a hospital that continues to deliver high quality care.
• To ensure long-term sustainability, we will be making thoughtful service changes, potentially beginning as soon as next week. We will announce changes as quickly as they are known. This multi-step transition is expected to take 12 to 18 months.
• Baptist Health also plans to invest $20 million in campus upgrades.

• Reports that physician contracts are expiring in June are incorrect. Physician contracts expire in different months, and only a few have end dates in June. While automatic renewal of contracts is not a current practice, we will work to renew needed provider contracts ahead of expirations.
• Staff will continue to hear updates directly from leadership as plans develop.
• We appreciate everyone’s continued dedication to one another and to the patients and communities we serve.

Thank you,

Cindy Pratt

Director of Practice Operations

Family Medicine and Specialist Clinics – West Region