County’s only hospital considers sale amid financial uncertainty
By Hunter Walterman
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ARCADIA, Florida (WFTX) — DeSoto County’s only hospital is considering a sale amid looming Medicaid cuts and pressure to hire more staff.
An outside health care system approached DeSoto Memorial Hospital about a sale, according to Sarah Hipp, a hospital spokesperson. The hospital then launched a Request for Proposal process to receive bids from any interested party, per state law.
DeSoto Memorial has not received any formal proposals, CEO Vincent Sica said. But several larger hospital systems – and what he described as an independent group – have called to express interest.
The Arcadian and Suncoast Searchlight first reported the move. The hospital is considering a sale or merger because of concerns over future Medicaid and Medicare reimbursements, Sica said.
Federal funding makes up a significant majority of the hospital’s money. About 50% of DeSoto Memorial’s revenue comes from Medicare, according to Hipp. Roughly 15% comes from Medicaid.
In July, President Donald Trump signed the ‘One Big Beautiful Bill,’ which included sweeping health care changes – with significant cuts to Medicaid.
The hospital also has concerns about replacing an aging staff, Sica said. It can be a challenge for the hospital to find nurses, therapists, and other technicians.
“Sometimes it’s difficult for us to compete with the coastal hospitals that, you know, are gonna pay a little higher wage and have a little better benefits,” Sica said.
The hospital has 13 clinical openings at the moment, including nurses, speech pathologists, and a physical therapist. Big health care systems have a larger pool of physicians, Sica said, which could benefit DeSoto Memorial.
The hospital has also struggled financially. Suncoast Searchlight reports an independent financial review finds the hospital posted a $500,000 operating loss in fiscal year 2024.
The hospital’s Board of Directors held a public input meeting on Thursday. At the meeting, people spoke about the need to keep DeSoto Memorial open, calling it a vital lifeline for the community.
“This hospital can’t close,” said Arcadia city Councilman Robert Heine, who also serves on the hospital’s board.
“What would happen to this community if it did close?,” Heine said. “What’s going to happen to the tourists we get every season that depend on this place for medical care? It would be devastating.”
Heine questioned why the DeSoto County Board of Commissioners didn’t send anyone to the meeting – considering it’s the county’s only hospital. FOX 4 reached out to every member of the commission, but did not immediately hear back.
Sica, the CEO, said DeSoto Memorial will not close – even if the board decides not to sell or merge. He said it would find a way to keep operating, no matter what.
“The hospital is always going to be here,” Sica told FOX 4.
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