Lion Star issued a misleading statement last night about payments from Texas Health and Human Service (HHSC) and recoupment of funds paid in the past. This statement was disingenuous and was most likely and attempt by Lion Star to deflect criticism by the hundreds of citizens that attended last night’s board meeting who voiced their feelings about Lion Star’s closing the Obstetrics Unit and Garrison Clinic. Lion Star knew about the recoupments before it took over the operations of Memorial Hospital. As has been typical, Lion Star did not communicate with HHSC and did not forward the District numerous communications from HHSC. The district has tried repeatedly over the last 2 years to communicate with HHSC about the issue but has been unable to make progress because the District is not the current operator of the Memorial Hospital. The district has honored its indemnity commitment and wired over $2 million dollars to handle the recoupment due now, and has scheduled a meeting with HHSC to discuss further repayment options. As the District has repeatedly stated in its filings in Federal Court, Lion Star is insolvent. Lion Star’s financial woes are of its own making and have nothing to do with the District or HHSC.