Redemption Song: Clay Hobbs

Wonks at Work

In Arkansas and around the country, private equity groups have a growing financial interest in health care. While private equity investment can revive struggling hospitals or reinvigorate stagnant ones, critics accuse some of loading hospitals with debt, stripping their assets, and leaving communities to deal with the aftermath. That’s what happened in Hope, Arkansas, last year when the owner of Wadley Regional Medical Center, Dallas-based Steward Healthcare Group, declared bankruptcy. The hospital was immediately at risk of closing, but fortunately there were leaders in the community who would not let that happen. In this episode of the Wonks at Work podcast, we learn more about this cautionary tale from Clay Hobbs, chief operating officer of Pafford Medical Services, which partnered with the community to save their local hospital.