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Panhandle hospital could lose license

Gulf Pines Hospital, a 30-bed facility in Port St. Joe, is in trouble with state health officials.

PORT ST. JOE - The administrator and medical director of a troubled Panhandle hospital resigned and a warning was given to employees that their paychecks could no longer be guaranteed.

Yet Gulf Pines Hospital, the only hospital in Port St. Joe, plans to keep its doors open through the weekend.

The hospital has survived a number of financial difficulties. But on Thursday, the Florida Agency for Health Care Administration told administrators it had until March 12 to right several listed wrongs or have its license in jeopardy.

The lack of a license would mean the loss of Medicare and Medicaid reimbursements.

The news prompted Liz Register and Dr. Michael White to quit.

"The things I need to do that were identified by the state, I can't do," said Register, who took administrative duties out of the hands of owner Hugh Steeley in September.

Problems at the 30-bed hospital included cash flow difficulties, which in part led to delinquent paychecks; violations of patients' rights and confidentiality; and a lack of company bylaws.

White, who left a job to work at Gulf Pines, said he is owed more than $300,000. The doctor said he had been using his personal funds to help maintain the emergency room and has not been paid in weeks.

Employees' last two paychecks arrived late.

The hospital seemed to be recovering last fall after Steeley twice tried to declare bankruptcy when he fell more than $10-million in debt. A lender helped Steeley pay off his debts, new management was hired and the emergency room was reopened under the leadership of Register and White. Now, the future is uncertain.

"Maybe I can't fix (the problems)," Steeley said. "All I can accomplish today is to get to Monday."

[Last modified February 20, 2005, 00:52:14]