A lawsuit was filed Friday by members of the Board of Directors of Hospice of the Ozarks against Baxter Health (referred to in the suit as Baxter County Regional Hospital). The suit seeks, among other things, to restrain 14 hospital board members and employees newly appointed to the Hospice Board by Baxter Health from taking any actions on behalf of Hospice or from voting at any Hospice board meeting.The lawsuit also asks the court to make null and void any decisions already made by the new board members claiming their appointment was in violation of the bylaws.ACTIONS AIMED AT SEIZING CONTROL OF ASSETS
The lawsuit alleges the action to appoint the new board members taken recently by the hospital was fraudulent and done to “seize control and power from the current 11-member Hospice board.”
The suit also alleges the recent addition of hospital board members and employees was done “unilaterally” and in disregard “for the proper procedures for taking such action pursuant to the 2019 Hospice bylaws.”
The hospital took the action, the lawsuit charges, so it “could seize and control assets” belonging to Hospice. Baxter Health officials are described as being “panicked” that, if Hospice becomes a separate entity, the hospital “will lose the ability to claim and access substantial funds and assets” held by Hospice.
CONTROL OF MONEY AND ASSETS
The Hospice lawsuit alleges that Baxter Health “is financially stressed and fearful of losing its connections to Hospice because Hospice is financially independent and the hospital thinks it needs Hospice’s substantial funds and debt free assets to support itself.”
The “fraudulent action” by the hospital to “pack the Hospice board” gives Baxter Health “the ability to bind Hospice to contracts, make decisions on behalf of Hospice that are not in the best interest” of the organization.
In the lawsuit, Baxter Health’s actions are alleged to leave Hospice of the Ozarks in danger of immediate and irreparable injury, loss or damage should the new hospital appointed board members take actions that solely benefit the hospital and are not aligned with the mission and goals” of Hospice of the Ozarks.
NEW BOARD MEMBERS IN MAJORITY
With the 14 new board members appointed by the hospital, Baxter Health has the ability to outvote the current 11-member Hospice board by a 14-to-11 vote majority, the suit contends.
The court is also asked to find that, under the 2019 bylaws, the 11-member Hospice board is entitled to manage the affairs and business of Hospice.
BAXTER HEALTH ISSUES STATEMENT
The following statement was issued by Baxter Health to KTLO, Classic Hits and The Boot News Saturday morning:
“Baxter Health’s priority is to protect the mission of Hospice of the Ozarks and ensure that patients and families in our region continue to receive compassionate, high-quality end-of-life care.
Since 1986, Baxter Health has served as the sole member of Hospice of the Ozarks. For nearly four decades, our role has been to safeguard the organization’s mission, ensure compliance with state and federal regulations, and support the long-term sustainability of hospice and palliative care services for this community.
Over the past year, representatives of the Hospice of the Ozarks Board, including its Chair and Executive Director, expressed interest in separating the hospice from the health system to pursue an independent direction. During these discussions, Baxter Health requested financial information and analysis that would demonstrate the feasibility and long-term sustainability of such a transition. Either those materials were not provided, or they did not exist. Proceeding without this due diligence would have created significant risk for the long-term stability of hospice services.
To address these concerns, Baxter Health and its legal counsel made multiple attempts to meet jointly with the Hospice Board to review financial information, share data, and explore solutions together. Those invitations were declined, leaving Baxter Health unable to fully evaluate the proposal or ensure that the hospice’s mission and patients would be protected.
Following these repeated refusals to engage, the Baxter Health Board of Directors met on October 20, 2025, and took actions allowed under Arkansas law and the hospice’s Articles of Incorporation. These steps included adopting updated bylaws, appointing additional Board members, and naming an Interim Executive Director to ensure operational continuity and leadership stability.
Baxter Health has supported Hospice of the Ozarks for nearly forty years and remains committed to strengthening hospice and palliative care services for the future.
The leadership and staff of Hospice of the Ozarks want to reassure patients and their families that their focus is on patient care and there will be no disruptions to their work.”
RESTRAINING ORDER: FIRST STEP
During the time the court considers the Hospice claim that Baxter Health’s actions were in violation of the 2019 bylaws, the lawsuit requests the court to first issue a temporary restraining order and, prior to its expiration, to hold a hearing on a preliminary injunction which, if approved, would be in effect until a final ruling on a declaratory judgment on the issue of bylaw violations and other matters can be made.
The court should order to return the parties to the status they were in prior to Baxter Health taking the recent actions it did and to declare those actions, including adding new members of the Hospice board, null and void.
HOSPITAL BOARD MEETS IN SPECIAL SESSION
The lawsuit contends that at a special meeting October 20, the Baxter Health board, without authority from Hospice, amended and restated the 2019 edition of the bylaws that were in force at the time.
The Hospice lawsuit claims the hospital’s actions violated the 2019 bylaws which call for a notice of any proposed changes to be given in writing to all Baxter Health and Hospice board members at least 10 days in advance of any meeting where the changes would be up for consideration.
It was at the October 20 meeting of the Baxter Health board that action was taken to appoint the 14 new members to the Hospice board. All of the 14 new members were shown as voting yes to amend the by Hospice bylaws.
According to the lawsuit, the 11-members of the Hospice board were shown as being absent but voting no on the resolution to amend the by-laws.
In the lawsuit, it is alleged members of the Hospice Board were not even made aware of the October meeting of the hospital board.
LEASED EMPLOYEE AGREEMENT TO END
A required 90-day notice sent to Baxter Health on August 26 notifying the hospital that Hospice of the Ozarks intended to terminate an “Employee Lease Agreement” between Hospice and the hospital effective January 1 is pinpointed as one of the factors that led the hospital to take a series of “fraudulent actions” that made the lawsuit necessary.
The agreement, which was entered into in 2020, called for the hospital to “lease” certain of its employees to Hospice and for Hospice to pay the hospital for “leasing” the employees.
According to the lawsuit, the notice that Hospice intended to terminate the lease agreement “set off a series of actions” by the hospital demonstrating “its concern about losing access to the substantial funds and assets held by Hospice.”
After learning that Hospice wanted to terminate the agreement and separate its affairs from those of Baxter Health, “the hospital became hostile to Hospice and its board of directors,” according to the lawsuit.
At a meeting of the Hospital board on October 6, Greg Wood, former Hospice director, told the board that “Hospice was self-sustaining financially without Baxter Health’s involvement and that the mission and future of Hospice is separate and apart from the mission and future of the hospital.”
The lawsuit is being brought by individual members of the current Hospice Board. It was filed in Baxter County Circuit Court/Civil Division on Friday (November 21).
DISCLAIMER
Mountain Lakes Broadcasting Corp.’s co-owner Heather Loftis is named as a defendant in the suit because she serves as a member of the Baxter Health Board of Directors.
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