Whitney: Medical Center Makes Payroll Again

WHITNEY (September 27, 2013)--The Lake Whitney Medical Center, which is embroiled in an ownership dispute, came up with enough money again Friday to meet its payroll for a third time as officials try to find a way to keep the facility open.

The Whitney Hospital Authority board continues to operate the facility, which remains open.

Five patients were in the hospital Friday and others were being seen in the emergency room.

The hospital’s legal owner, Dr. Tariq Mahmood, 61, is free on $25,000 bond after he was indicted in April by a federal grand jury in Tyler.

He’s charged with conspiracy to commit more than $1 million in health care fraud in nine separate counts, but denies the accusations.

The board says Mahmood still owes more than $200,000 on the 49-bed facility.

The board is trying to regain ownership while looking for a potential buyer.

A temporary restraining order remains in effect after a court hearing Thursday that bars both the board and Mahmood from removing anything from, making any changes to, or selling the hospital until the dispute is resolved either at trial or through mediation.

Mahmood owned or operated four other hospitals in Texas, including the Central Texas Hospital, Cozby, Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Community General Hospital in Dilley, Shelby Regional Medical Center in Center, and Central Texas Hospital in Cameron, court documents showed.

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