Lockney Hospital District Reviews Finances, Approves Tax Abatement Deal

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W.J. Mangold Memorial Hospital in Lockney (Photo FCR)

LOCKNEY, TX – The Lockney General Hospital District Board of Directors met January 28 in the hospital conference room, where members approved a tax abatement agreement tied to a major wind energy repower project and reviewed the district’s November financial report.

Board President Brent Barker called the meeting to order at 12:35 p.m. following an invocation and meal. Board members present included Barker, Becky McPherson and Zach Cummings. Marlon McDonald was absent. Also attending were CEO Vince DiFranco, CFO Travis Watkins, CNO Jason McDonald, attorney Bryan Guymon of The Underwood Law Firm, and Wes Jackson.

Wind Energy Tax Abatement Approved

Under new business, the board considered a proposed tax abatement agreement with South Plains Wind Energy, LLC, related to a repower project involving 100 wind turbines in Floyd County. Of those, 69 turbines are located within the hospital district.

Representatives presented financial estimates and outlined the project details. Acting pursuant to Chapter 312 of the Texas Tax Code, the board unanimously approved the tax abatement agreement, accepting a Payment in Lieu of Taxes (PILOT) set at 60 percent, with payments expected to begin in October 2028.

DoorSpace Agreement to Streamline Credentialing

The board also approved an agreement with DoorSpace, a company specializing in credentialing healthcare providers with insurance payors. Administrators said the service is intended to streamline the credentialing process and reduce issues with physicians falling out of network or experiencing delays.

November Financial Report Shows Net Loss

Board members reviewed financial and statistical reports for November 2025.

Hospital activity and clinic volumes were below budget expectations. The Lockney Clinic recorded 689 visits, including 35 new patients, while the Silverton Clinic reported 235 provider visits. The hospital had two acute admissions totaling nine patient days and six observation patients. Emergency room volume reached 169 visits.

Additional November statistics included:

Two procedures performed (one pain management and one operating room procedure)

2,798 lab tests conducted

199 radiology studies completed

117 swing bed patient days with three discharges

258 physical therapy visits

Total gross patient revenue for November was $1,388,158, compared to a budgeted $1,915,380. After adjustments and expenses, the hospital reported a net loss of $242,531 for the month. Expenses were noted to be under budget.

The board unanimously approved the financial report.

Grant Opportunity and Funding Updates

DiFranco informed the board about a potential grant through the Texas Health & Human Services Commission Rural Hospital Financial Stabilization program. The possible award totals $687,516, payable in three installments through October 2027. A financial improvement roadmap must be submitted and approved to secure funding.

An intergovernmental transfer payment related to the uncompensated care program is due February 3, with a return payment expected later in the month.

Staffing and Service Updates

Chief Nursing Officer Jason McDonald reported that two new nurses — one full-time and one part-time — have been hired. However, the hospital continues to seek an RN and LVN for night shift coverage.

The pain management clinic saw increased patient volume and procedures in December, and administrators are exploring additional marketing efforts. The infusion center is also evaluating the addition of on-demand elective wellness infusions on a cash-pay basis.

Provider Recruitment and Community Outreach

DiFranco reported ongoing recruitment efforts for an ER/Hospitalist physician, including two phone interviews and a potential onsite interview in March.

He also informed the board that a Financial and Operations Assessment through Forvis Mazars is scheduled for February 19 as part of the stabilization program process.

Additionally, DiFranco shared that he has not yet received a response to a January 7 letter sent to the Caprock Hospital District requesting financial assistance for uninsured Floydada residents treated at WJ Mangold Memorial Hospital’s emergency department.

The annual WJ Mangold Community Health Fair is scheduled for Saturday, February 21, from 9 a.m. to noon at Lockney Elementary School. Approximately 20 vendors are expected to provide free health screenings and wellness information.

Other Actions

The board approved updated employment agreements for Jenna Everett, P.A., and Nicole Munden, FNP, following their request to transition to a three-day work week. The arrangement will be evaluated in 90 to 180 days.

Board members also reviewed committee reports and agreed to adjust upcoming meeting dates to March 4, April 1 and April 29, 2026.

The meeting adjourned at 2:50 p.m.

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