This post is reprinted with permission of the Taxpayers Channel in Greenwood.
Today, the city council heard from Tray Hairston, a financing attorney from Butler Snow.
Mr. Hairston came to explain the way that the city could finance the $4.5 million that it has to pay in order to repair the hospital, and to pay off the multi-million dollar short term loan to the hospital from Medicare.
GLH is practically broke, and may well have to shut down completely by the end of November. The city and county have been negotiating with UMMC for a friendly takeover, but several "deal breakers" have arisen. Now UMMC is demanding that the city and county pay for $9.1 million in repairs and Medicare loan repayments, since UMMC isn't responsible for them.
Unfortunately, the news wasn't very good at today's meeting. According to Mr. Hairston, the city and the county will have to float General Obligation Bond Issues, and will have to raise property tax millage rates to pay for the bonds.
The amount of money needed for the repairs and loan repayments is too great to use easier, short term borrowing, Hairston told the council.
Furthermore, he indicated that the bond issue has to be advertised in the paper, and that ultimately it will take 3 months to actually obtain the money in hand. There may have to be two separate bonding issues by the city, since some of the money is for capital repairs, while most of the money is to pay off the Medicare loan money that the hospital owes.
But UMMC wants a "Letter of Credit" right now. There doesn't seem to be a way for the city or county to provide such a letter in the time frame that UMMC has in mind.
Additionally, the county bumbled the resolution of intent last Friday by removing UMMC from the resolution as the "Payee" of the Letter of Credit.
And if UMMC isn't satisfied, it may kill the entire leasing project.
To view our coverage of this matter, please click here: Some county supervisors apparently confused about UMMC demand for $9.1 million payment for leasing the hospital
A video of today's city council meeting may be seen here: Greenwood City Council meeting, November 1, 2022
To review our reporting on GLH and its financial woes, please see here: Index of Greenwood Leflore Hospital news articles
18 comments:
No hospital would be better than UMMC managing it.
Here is a novel idea. Quit paying employees more than they are worth. No qualified medical employee would work in this place if he or she had the talent to work in a “good” medical environment. It is a bitter pill, but it needs to be addressed.
Dying on the vine due to 85% patient population who doesnt pay a dime-it's called uncompensated care.
Until we get Medicaid expansion there ain't no way in hell that Delta-based hospital is going to make it. There just aren't enough "paying" customers.
Uh oh. No sale.
I get it that healthcare is a business. But UMMC greed is out of control, in this timeframe demand and of course, BCBS (who are no angels themselves). Where is the patient in their priorities?
Don’t feel too sorry for UMMC (University of Mississippi medical center, also know as Ole Miss.). Ole Miss reports their “endowment fund” stands at $775,000,000.00. Why does the school not spend money given to them for purposes just like this?
You can thank Tate for the problems caused by refusing Medicaid expansion. Makes no sense for our poor state.
Medicaid patients won't keep a business afloat; it's pennies on the dollar. How much does their hospital top management make? Like the local school superintendent, i.e. too much?
Healthcare for the poor and elderly should not be a "business"
I am afraid all of the welfare and Medicare people will pack up and leave Mississippi for more generous states. That would be just terrible, wouldn’t it?
Medicaid is a big federal social program that pays generously to layers of bureaucracy but little to doctors and hospitals.
From doctors I speak with, Medicaid does not pay even actual costs of treatment.
School Choice, Vouchers and the resulting prosperity of better jobs can enable families to buy group plan health insurance.
"Why does the school (Ole Miss) not spend money given to them for purposes just like this?"
Let me take a guess. Maybe because people did not contribute all that money to rescue rural hospitals. When contributors fund a 'fund', it's for their understanding of a specific or range of stated expenditures.
If you fuck that up, the whole contribution thing dries up. I hope this helps you understand.
@3:46pm ^^^
Best comment ever.
Thank you and I wholeheartedly agree.
I disagree with making freeloaders comfortable here.
They can always move to Kalifornia and get their "free healthcare".
Socialism is great til you run out of other people’s money!
A Bennie Thompson problem. You can’t run a hospital on Medicaid. That’s why all rural hospitals have been bought by bigger systems or closed. Ben has ignored this issue for years. Now he will want the Fed’s to fix it with money. Which they will not. Or bring for commercial payers into the market with new industry. Oh, but they vote republican so that will not happen from his office. Keep um poor and voting democrat. Sad but true.
Bennie Thompson has done more damage to the state that covid ever could do.
Take me to Ruleville!
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