Officials: Hospital’s $54K lien tied to Allegiance Health Management

Thursday, June 25, 2020

By Samantha Jones

Allegiance Health Management is responsible for paying more than $54,000 in payroll taxes that led the Arkansas Department of Finance and Administration to issue a lien, according to Eureka Springs Hospital officials.

Scott Hardin, spokesperson for the Arkansas Department of Finance and Administration, said last week that the department filed a lien against Eureka Springs Hospital LLC with the Carroll County circuit clerk in May. Hardin said the department is limited in what information it can share with the public, with the exception of a lien being filed.

“A lien is filed in this case,” Hardin said, “so we can speak to the lien itself.”

Hardin said the lien was filed against Eureka Springs Hospital LLC for $54,048.57 for unpaid payroll taxes.

“It was actually for 2019,” Hardin said. “Any time we file a lien, it’s for back sales tax or withholding. In this case, it’s for withholding.”

Hardin referred to the certificate of indebtedness that was filed with the county circuit clerk on May 14. The document says Eureka Springs Hospital LLC at 24 Norris St. in Eureka Springs “is justly indebted to the State of Arkansas for Withholding Wage Tax for the period(s) of 12/31/2019.”

Hardin acknowledged that the hospital experienced a change in ownership in 2020.

The Eureka Springs Hospital Commission began working on the transition of ownership in 2019 but it wasn’t complete until Feb. 1. The commission hired consulting firm Alliance Management Group to help with the transition and voted June 2 to keep working with the group.

Alliance representative Darrell Parke said Monday that the hospital has unpaid taxes but Allegiance is responsible for taking care of that.

“That is directly related to the former company,” Parke said. “Anything you see with ‘Eureka Springs Hospital LLC,’ is Allegiance.”

This isn’t the first time he’s encountered a situation like this with the hospital, Parke said.

“We have to worry about it because now we have to deal with it, but we’re not responsible for it,” Parke said. “They are. So what typically happens in that kind of situation is we forward it on to the commission attorneys who negotiated the settlement agreement and they send it over to Allegiance, and Allegiance has to take care of it.”

Parke added: “Even though we have a negotiated settlement agreement, we’re still cleaning up issues from that settlement agreement. Nothing gets resolved quickly. We have to work through it.”

Parke assured the community that the hospital is on top of the situation.

“These issues are being addressed,” Parke said. “As they come up, we send them back to Allegiance and they take care of them.”

Allegiance Health Management could not be reached for comment.

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