CLEVELAND, Texas – After a hospital in Cleveland abruptly closed its doors Monday with a sign on the front door, KPRC 2 has learned that the closure is only temporary.
KPRC 2’s Corley Peel spoke to a source with Texas Rural Hospitals LLC, who said Texas Emergency hospital had to close to avoid putting people in danger, and there was a “funding issue.”
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The hospital plans to reopen by next week. The source also noted that no employees of the hospital have been terminated.
Yesterday, KPRC 2 reported that some of the hospital’s staff members were waiting for checks. The source says they can expect to be paid by next week.
For now, all patients are being referred to HCA in Kingwood for care.
The hospital was formally owned by Emergency Hospital systems who sent the following statements:
“Texas Emergency Hospital in Cleveland is no longer part of the Emergency Hospital Systems (EHS) network as of April 4, 2025. Emergency Hospital System’s lease agreement of Texas Rural Hospital was severed in March of 2025. The owner of the facility entered into an agreement with HealCrest Network LLC to continue operations at the 300 E. Crockett St facility in Cleveland, Texas. Emergency Hospital Systems has no affiliation with the ownership of HealCrest Network LLC. We are unaware of the actions taken by the company in regards to any operational decisions that have occurred at Texas Rural Hospital.”
Here is the full statement from the owner of Texas Rural Hospitals LLC:
“Thank you for your inquiry regarding the recent situation at our Cleveland facility. I appreciate the opportunity to address these important concerns.
We deeply regret to confirm that Texas Rural Hospital in Cleveland did temporarily suspend operations on May 12th. This difficult decision was made solely as a precautionary measure due to funding shortfalls that affected our ability to maintain appropriate care standards for our community. Patient and staff safety is our absolute priority, which necessitated this temporary closure.
Regarding employee compensation, we sincerely apologize for the delayed payroll. This is the first time we’ve been unable to meet our payment schedule, which is completely unacceptable to us. We understand the significant hardship and stress this places on our dedicated team members and their families. All employees are scheduled to receive their payments this week, and we are committed to making appropriate amends for any financial difficulties this delay has caused.
The timing of these challenges coincides with our ongoing ownership transition. We stepped in to temporarily operate the facility to prevent a permanent closure while finalizing the transaction. Unfortunately, unexpected delays in closing the acquisition created a funding gap that ultimately led to our difficult decision to temporarily suspend operations. We are working diligently to complete the necessary capitalization and anticipate reopening within one week.
We understand this situation has created uncertainty and hardship for our employees, patients, and the community. Please know we are doing everything possible to resolve these issues quickly and transparently. We remain deeply committed to providing healthcare services to Cleveland and will share updates as soon as they become available."
