A civil lawsuit has been filed against Minden Medical Center alleging nonpayment of equipment and services, as officials acknowledge ongoing financial challenges at the hospital.
The lawsuit is the latest in a series of financial challenges facing the hospital, including multiple vendor claims and previously overdue utility bills.
Records from the Webster Parish Clerk of Court show additional filings totaling more than $750,000 in unpaid services from 2024 for several home health and ambulance vendors. In addition, the hospital recently paid approximately $120,000 in overdue utility bills to the City of Minden.
Most recently, Shreveport-based Storer Services, Ltd. filed suit Friday in 26th Judicial District Court, claiming the hospital failed to pay for a 40-ton HVAC replacement chiller and related work. According to the filing, the company completed installation and issued an invoice in September 2025.
The suit further alleges the company continued providing maintenance and mechanical services on the chiller, as well as work on other equipment and plumbing services throughout the facility. Storer Services is seeking $170,876.53 in total, along with attorney’s fees, court costs, interest, and additional charges.
Minden Medical Center is owned by Allegiance Health Management, a Bossier City-based company that operates 11 hospitals across Louisiana. Allegiance acquired the Minden facility on August 1, 2018.
Allegiance Health Management has faced financial and legal challenges involving other properties in its system, according to prior reports. Those include lawsuits, settlements, and tax liens tied to multiple facilities in Louisiana and other states. However, courthouse records indicate no Internal Revenue Service liens have been filed against Minden Medical Center.
Hospital CEO Keith Cox addressed the financial situation in a statement, citing industry-wide pressures.
“Like many healthcare institutions across the country, we have experienced rising operational costs, workforce shortages, and reduced reimbursement rates. These pressures have created significant strain on our ability to sustain the level of care and services you expect and deserve,” Cox said.
Cox said the hospital had fallen behind on payments associated with Louisiana’s Directed Payment Program but has since addressed those arrearages. He added that delays contributed to difficulties with vendors, prompting negotiations to stabilize operations.
“These legislative changes moved the rates to a level where we will be financially solvent going forward,” Cox said, referencing adjustments tied to the state’s Rural Look-a-Like hospital designation, which increased Medicaid reimbursement rates.
Cox said the hospital is pursuing cost-saving measures, operational changes, and additional funding sources while working with staff and community partners to maintain services.
“Transparency is important to us. We believe our community deserves to understand both the realities we face and the steps we are taking to address them,” he said.
The Minden Medical Center Board of Governors also issued a statement expressing concern about the hospital’s financial condition and its ownership.
“We simply ask for Allegiance to be transparent and financially accountable. We have made requests in the past for routine financial information and have been denied access. We sincerely hope that changes immediately,” said board chairwoman Melissa Madden.
The board called on state and federal officials to support efforts to ensure financial accountability, while emphasizing its commitment to maintaining quality patient care.
“Our priority remains quality patient care and a sustainable future for Minden Medical Center,” the statement said.
The lawsuit remains pending in district court.