Lawsuit against Baxter Health by former Hospice board members dismissed

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The nearly 2 month legal dispute between now former members of the board of the Hospice of the Ozarks and Baxter Health, CEO Ron Peterson and newly appointed board members came to an end Monday with the dismissal of the lawsuit and resignations of the original 11 member board.A motion to dismiss the lawsuit without prejudice was filed by the plaintiffs who were the original 11 member board of the Hospice of the Ozarks in Baxter County Circuit Court. A dismissal of a lawsuit without prejudice means it can be refiled in the future.

A release by Baxter Health Tuesday states, “Baxter Health confirms that after motions to dismiss were filed challenging the validity of claims raised, the former members of the Hospice of the Ozarks Board of Directors voluntarily dismissed their lawsuit and subsequently submitted their resignations. The dismissal brings the matter to a close and allows the organization to move forward with stability and focus on patient care.” The statement goes on to say, “The Baxter Health Board of Directors and Senior Leadership Team expressed sincere appreciation to all who have served Hospice of the Ozarks over the years. Since Hospice of the Ozarks joined the Baxter Health family 39 years ago, they have worked together to build a program that has provided comfort, dignity, and compassionate care to countless families in our community, and that legacy is respected and appreciated.”

The 11 resigned former members of the hospice board include, Joe Dillard, Shelly Hill, Art Stone, Barbara Mallett, Mariyln Wheat, Pat Ballard, Elton Kirby, Trieneke Self, Estella Rhoades, Judy Strother and Karen Montgomery.

KTLO, Classic Hits and the Boot News reached out to former Hospice of the Ozarks board President Joe Dillard, who shared the following statement.

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The original suit was filed on November 21, 2025 and sought to restrain 14 newly appointed board members by Baxter Health from taking any actions on behalf of Hospice or from voting at any Hospice board meeting. The lawsuit alleged the action to appoint the new board members taken recently by the hospital was fraudulent and done to seize control and power from the then current 11 member Hospice board.

Baxter Health’s response stated that the move by Hospice of the Ozarks board members to separate itself from Baxter County Regional Hospital (BCRH) was being poorly planned and prepared for, leaving the hospital no choice but to step in and limit Hospice’s ability to move forward with a separation and rebranding plan.

The newly appointed 14 member board will continue to serve as the board of directors for Hospice of the Ozarks.

Follow the links below for KTLO’s previous reporting on the dispute.

Hospice board members file suit against Baxter Health over alleged bylaw violations

Hospital answers Hospice board lawsuit

War of words continues between Hospice and Hospital

DISCLAIMER
Mountain Lakes Broadcasting Corp.’s co-owner Heather Loftis was named as a defendant in the suit because she serves as a member of the Baxter Health Board of Directors.

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