In 1979, the first bond was issued to the Adair County Hospital District in the amount of $4,590,000 for construction and equipment of Westlake Regional Hospital.

On July 31, 1984, a mortgage bond was issued in the amount of $600,000 for the construction of the Medical Office Building located across the road from the current Westlake Regional Hospital. March 24, 1995, two additional mortgage bonds were issued in the amount of $675,000 and $75,000 for the purchase of Westlake Primary Care and the attached building to Westlake Primary Care.

In the year 1997, a First Mortgage Bond Series 1997 was issued in the amount of $6,010,000 to refinance the original 1979 Bond.

Between the years 1979 through 1997, the total debt liability increased in the amount of $2,770,000 with a total debt liability in the amount of $7,360,000.

The most significant increase of the debt was in the year 2007.

Two loans were obtained in January 2007 to the District by Monticello Bank in the amount of $3,000,000 and by United Citizens Bank in the amount of $3,000,000 which was refinanced in one or more of the following bonds.

Then in March 2007, bonds were issued in the amount of $3,565,000 for the following: MRI, CT Scanner, Preliminary expenditures relating to acquisition, construction and installation of renovation and expansions. The bonds were also used to reimburse settlements in connection with Medicare and Medicaid.

On March 16, 2007, a Special Called Meeting of the Adair County Hospital Board of Trustees specified the purpose of the Bond issue is to make renovations to the first two floors of the hospital including the Emergency Department, Laboratory, Imaging, Pharmacy; renovation of patient rooms for handicap showers and to add a third floor to the hospital.

In June 2007, Adair County Public Hospital District Corporation, a bond was issued in the amount of $3,995,000 for the purpose of paying off 1995 Series A & B Bonds, various capital leases and Bond issued Series 1997 with minutes referring back to the Special Called Meeting on March 16, 2007.

In August 2007, General Obligation Bonds Anticipation Notes Series 2007A in the amount of $3,000,000 was issued to purchase MRI, CT scanner, preliminary expenditures, relating to acquisition, construction and installation of renovation and expansions. The bond was also used for reimbursement settlements in connection with Medicare and Medicaid.

This bond also referred to the minutes of the March 16, 2007 Special Called Meeting.

The total amount of debt increased from $7,360,000 to $11,160,000.


July 2009, a Line of Credit was established at the Bank of Columbia in the amount of $350,000, which was paid in full.

In July 2010, $250,000 of the line of credit was accessed again for operations of the hospital.

In October 2010, the current Mortgage Revenue Refunding Bond Anticipation Notes, Series 2010 was issued in the amount of $6,111,585 to refinance First Mortgage Bonds Series 2007A.

Also, at that same time, the current General Obligation Bond Anticipation Notes, Series 2010 was issued in the amount of $6,824,354 to pay off First Mortgage Bonds 2007 A & B increasing the overall total debt to $13,785,939.

The total debt liability for only Bond obligations and bank loans.

In addition to this debt, the hospital had an outstanding liability to State Medicaid in the amount of $2,700,000 increasing the total liability to $16,485,939 excluding Accounts Payable.

At this time, Accounts Payable had a balance of $315,416, not including checks that had been processed in the amount of $512,129 but had not been mailed due to cash flow.

The total liabilities at the end of January 31, 2011 was $17,313,484.


January 31, 2011, previous Administrator Rex A. "Rusty" Tungate resigned from his position as CEO from Westlake Regional Hospital. On that same day, eighteen managers including the Assistant Administrator also resigned.

Spectrum Health Partners, LLC had already presented in the month of January 2011 a proposal to conduct a Business Assessment for the Board regarding Adair County Hospital District. At this time, Spectrum Health Partners provided interim management beginning January 31, 2011.

During this time, Adair County Hospital District borrowed additional funds in the amount of $400,000 from the Adair County Fiscal Court in September 2011 which was paid in full;

paid in full $350,000 Line of Credit at Bank of Columbia, however, borrowed $350,000 in July 2011;

$1,700,000 from the Adair County Fiscal Court in December 2011 for the purpose of the new Electronic Health Records and operations;

$150,000 to Psychiatric Resource Partners to renovate the Behavioral Health Unit that opened in July 2012. Spectrum Health Partners chose to leave in August 2012.

At the end of August 2012, the Accounts Payable increased from $827,545 to $1,777,019, which is a difference of $949,474. The total liability at this time is estimated at $20,112,958.



In Mid-August 2012, two new board members were appointed to the Board realizing the Adair County Hospital District was in dire straits and had insufficient cash flow to continue operations.

The Board of Trustees met with the Adair County Fiscal Court requesting an additional $1,500,000 to cash flow the hospital in order to turn the hospital around.

However, in November 2012, the $1,500,000 loan to the Adair County Fiscal Court was paid in full.