Thomasville Hospital Sale Could Be Announced Within Two Weeks, Mayor Day Says

THOMASVILLE, Ala. — Mayor Sheldon Day told the Thomasville City Council on Monday, Oct. 12, that he hopes to announce new ownership of the shuttered Thomasville hospital within the next two weeks, and that a letter of intent has been signed for a forestry-related economic development project that could bring more than $100 million in investment and more than 100 jobs to the area.

Day said the prospective buyer of the closed Thomasville Regional Medical Center is working through paperwork and the approval process. He did not name the buyer, but his tone was upbeat.

“All I can say at this point is it’s all good news,” Day said. “We’re making great progress. I’m hopeful that within the next two weeks we will be able to give you an announcement.”

A court hearing still ahead

Day said the process includes a court hearing tied to the hospital’s receivership before the sale can be finalized. That step reflects how the property has been managed since it closed: the hospital has been under the control of a court-appointed receiver, so a judge must sign off before ownership changes hands.

The hospital, a 29-bed facility that opened in 2020, closed in 2024 after defaulting on a $35 million loan. Its mortgage holder, Florida-based North Avenue Capital, asked that the property be placed in receivership so it would be maintained and keep its value while a buyer was sought, and Circuit Judge Perry Newton appointed a receiver.

At a Sept. 9 hearing, a representative of North Avenue Capital told Newton that letters of intent had been signed with a potential buyer and suggested a closing around Thanksgiving, with operations resuming by the end of the year. Newton was skeptical, noting the case had produced hopeful projections before. South AL News reported on that hearing last month.

Then, at the council’s Sept. 28 meeting, city officials said paperwork for the ownership transfer had been filed with the state and was awaiting review, a process they expected to take about three weeks. That update suggested the deal had moved beyond letters of intent. Monday’s remarks indicate the timeline is now measured in days and weeks rather than months.

What a sale would and would not mean

A change in ownership would be an important milestone, but it would not by itself reopen the hospital. Restarting a closed hospital generally requires state licensing, federal Medicare and Medicaid certification, hiring and credentialing doctors, nurses and support staff, and restoring pharmacy, supply and billing operations. Those steps can take months even after a sale closes.

The receivership has helped keep a reopening possible. A receiver’s job is to protect the property, which means the building has been maintained rather than left to deteriorate the way an abandoned facility might.

The hospital’s story has been closely watched in Clarke County. It opened with considerable fanfare in 2020 as a modern, $40 million facility, but it began operating on the eve of the COVID-19 pandemic and too soon to qualify for much of the federal relief money that sustained established hospitals, a timing problem widely blamed for its financial troubles. Thomasville is one of several rural Alabama communities that have lost hospital care in recent years, and residents have had to travel elsewhere for inpatient and emergency services since the closure.

Project Burn letter of intent signed

Day also reported that a letter of intent has been signed for Project Burn, the code name for a forestry-related economic development prospect. He said the project could represent an investment of more than $100 million and bring more than 100 jobs to the area.

Company representatives had planned to visit Thomasville on Monday, but the trip was pushed back a week because of Hurricane Isaias. The company is expected to meet with city and county officials as talks continue.

Project Burn has been in the works for months. In September, Day said the Clarke County Commission had approved a letter of intent with the prospective wood products company, which was considering several sites, including a county-owned site and locations in Thomasville’s industrial park. At the time, Day said the city had been working to land the project for six to eight months. Read our earlier coverage of Project Burn.

Code names and letters of intent are standard in competitive site selection. Companies weighing multiple locations often insist on confidentiality until incentives are negotiated and a site is chosen. A letter of intent signals serious interest but is not a final commitment to build.

Built on the timber economy

A forestry project would fit Clarke County’s long history as part of Alabama’s timber belt, where forest products have been the industrial backbone for generations. Westervelt has also been expanding its Thomasville lumber mill, a roughly $60 million project expected to create 30 to 40 jobs, for which the Clarke County Commission approved tax abatements in September.

Storm emergency declaration stays in place

The council declared a local state of emergency on Oct. 8 as Hurricane Isaias approached. Isaias made landfall near Destin, Fla., on the night of Oct. 9 as a Category 2 hurricane before moving north through south Alabama.

Day said keeping the emergency declaration in effect would help preserve the city’s eligibility for possible reimbursement of costs tied to damage discovered during the recovery period. Local emergency declarations are often a prerequisite for state and federal disaster assistance, and damage to roads, drainage and utilities sometimes is not found until crews have had time to inspect.

Day praised city employees and departments for their work during the storm and noted that Thomasville came through with less damage than some neighboring communities.

Permits and other council business

The council approved several building and electrical permits, including:

• A $55,000 roof project at the post office
• Roof repair on a mobile home
• Work at Thomasville Congregation
• Electrical work for Lewis Pest Control

Water and sewer work

At the Thomasville Water and Sewer Board meeting, department officials said crews had finished several water leak repairs and completed hurricane preparations. Leaks were repaired at the No. 9 green on the golf course, on South Industrial and at a couple of other locations.

Officials also reported that cleaning of the sediment basins at the water treatment plant is complete. Sediment basins allow particles to settle out of raw water before filtration, and keeping them clean helps the plant run efficiently.

Additional water infrastructure work funded through state assistance is nearing completion, officials said. That includes improvements involving a 12-inch water line crossing U.S. Highway 43 and replacement of equipment at the old water tank.

The work continues a period of heavy investment in the city’s water system. Last month, Day told the water board that the city had completed or nearly completed more than $6 million in water and sewer work over the past year and a half, and the board adopted a $5.2 million budget for fiscal 2027.

What comes next

Several pieces of news could come quickly. Residents are watching for:

• A hospital ownership announcement, which Day said he hopes to make within two weeks
• A receivership court hearing needed before the hospital sale is finalized
• A rescheduled visit by Project Burn representatives, pushed back a week by Hurricane Isaias, including meetings with city and county officials
• Storm reimbursement steps, supported by the city’s continuing state of emergency

If the hospital sale and Project Burn both move forward, they would mark two of the most significant developments for Thomasville in years: the possible return of hospital services and one of the larger industrial investments the area has seen.