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Cozby-Germany Hospital – Grand Saline,Texas

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Cozby-Germany-HospitalLess than a year after being rescued from the brink of closure by two of its own physicians, Cozby-Germany Hospital in Grand Saline, Texas shut its doors on August 22, 2013.

Dissatisfied by the direction in which the facility was headed under former owner Tariq Mahmood, MD, who has been involved with several hospital closings in the area and faces criminal charges for defrauding Medicare and Medicaid, staff physicians Dr. Qasim Nayeem and Dr. Abbas Mian took ownership of Cozby-Germany on March 1, 2013, going so far as to set aside private funds to pay employees and keep doors open during the transition, while barely avoiding bankruptcy in the process.

Though hospital staff and neighborhood residents were excited about the new ownership, board members had their reservations as to how the hospi tal could be kept afloat using only personal funds. Board member Tom Elliot explained, “We have been looking to get somebody in. But all of the big hospitals we talked to didn’t want anything to do with a small community hospital like this. They would not be able to make the money they want to make from it.”

True to form, this dream of resurrection proved to be short-lived. Rumors of inadequate patient care and mismanagement shortly after transfer of ownership prompted a surprise inspection by the State Department of Health in July. Given the hospital’s tenuous state and the inherent chaos of the recent transition, the State Department was pleased with the inspection, offering five days for a plan of action to rectify any outstanding issues to be sent.

imgresBut the board and the hospital’s new owners could not see eye to eye over a management contract in which the board ultimately wanted to be responsible for the hospital and management of funds. Nayeem and Mian found this unacceptable, as they felt they were doing the lion’s share of the work, had all the expertise in health care management, and were taking the brunt of all financial risks. An amended agreement sent by Nayeem and Mian was refused by the board, which ultimately ended in the closing of the hospital.

“Incompetence, as demonstrated by these Board members is what shuts hospitals down,” said Dr. Nayeem.


Photo credit: watchdogblog.dallasnews.com

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Posted: October 21, 2014


Category: Lost Hospitals, Texas


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