Llano County earmarks another $300K to support hospital transition

Llano Regional Hospital, 200 W. Ollie St. in Llano. Photo by Brittany Osbourn
Llano Regional Hospital is in the throes of a currently costly operational change with the departure of service provider Mid Coast Health System. Since January, Llano County has set aside $750,000 to keep the facility at 200 W. Ollie St. running, with $300,000 of that allocated June 2 during the Commissioners Court meeting.
However, the county, which owns and now fully operates the hospital, is confident the situation will stabilize and the hospital will be self-sustaining in the near future.
“We feel good about the hospital long term. We’re going to be fine. These are just transitional costs,” said Pat McDowell, president of the Llano County Hospital Authority Board, which manages the hospital for the county. “I feel confident, and I feel excited about this.”
He told DailyTrib.com that more funding could be needed in the coming months but that the situation would be better by October or so.
“This money is to keep us going until we get the revenue stream flowing,” McDowell said. “We’re still going to be looking for support from the county, from the city, and the local trust.”
The authority board only recently gained access to hospital revenues after fully taking over operations and costs in April. Mid Coast maintained some level of involvement until separating fully on May 31. The parting of ways between the health care services provider and the county began in January amid disagreements about the cost-effectiveness of keeping the hospital running.
According to McDowell, the board also had to cover unforeseen penalties, bills, and costs left behind by Mid Coast that were only revealed when the county had full access to the accounts.
The Llano hospital has been reliant upon funding from other sources, including the county, which allocated $450,000 in January to the facility’s management when a separation from Mid Coast seemed inevitable.
“That hospital is very important to the city of Llano and the county of Llano,” Precinct 4 Commissioner Jerry Don Moss told DailyTrib.com. “The Hospital Authority Board just has some costs that they are trying to cover. (The hospital) will make its own money.”
Moss said the county is still putting together its 2025-26 budget, so it is too early to say if more funds will be dedicated to the hospital.
Of the $300,000 allocated by the Commissioners Court on Monday, $200,000 came from the county’s miscellaneous contingency fund and $100,000 from its election contingency fund.