The Kilgore City Council has agreed to use general fund revenues to pay off the city’s $2.8 million of tax-exempt bonds used to improve Laird Memorial Hospital.
The East Texas city needed to pay off the tax-exempt bonds when the council approved leasing Laird Memorial facilities to Shreveport-based Allegiance Health Management, a for-profit entity. The bonds could be used only for a nonprofit.
Allegiance acquired Laird from Community Hospital Corp., a nonprofit agency, in January 2008.
Michael Byrd, senior vice president of First Southwest Co., worked as financial adviser on the deal.