The Coahoma County Board of Supervisors met with a group assessing the situation at Delta Health System’s Clarksdale Hospital on Tuesday and gave a brief report.
A complex and critical problem has once again gripped Clarksdale’s hospital and while Delta Health System (DHS) has said it has no current plans to close the local hospital, community leaders and the chamber are monitoring the situation and have hired a consultant to evaluate DHS Clarksdale.
“This is a process we are going through and it is data driven,” said Crossroads Economic Partnership Executive Director Jon Levingston. “I hesitate to say much as we are early in this process and still gathering facts and information.”
Supervisors met with Levingston, Bowen Flowers and attorney Edward “Ted” Connell for over 30 minutes Tuesday. The group asked supervisors to sign a non-disclosure agreement as they will be presented sensitive data at some point, will develop a strategy to guard Clarksdale’s healthcare concerns and possibly seek others to manage the local hospital.
DHS Greenville announced last month it was having cash flow problems and Clarksdale’s hospital as part of that problem.
Coahoma County Supervisors met with leaders of Delta Health System in a special called meeting Aug. 30, to discuss concerns at the Greenville hospital, with county leaders then hired a consultant to gather data on the local hospital and offer solutions to revamping services at the local facility.
An hour-long executive session saw supervisors vote to approve a letter of engagement with Stroudwater, a healthcare advisory group with offices in Portland, Maine, Nashville and Atlanta, to look at the financial situation at the Clarksdale hospital.
Also in that August meeting Interim DHS CEO Iris Stacker and attorney Scott Phillips talked about issues that have the Greenville hospital an estimated $25 million in the red and Clarksdale’s hospital responsible for about $8 million of that.
The board also approved a letter of engagement with the legal firm of Wise Carter of Jackson in August and gave the nod to the chamber’s committee to “develop a strategy to deal with current challenges and report back to the board within two weeks.”
The committee will work under the auspices of the Economic Development Authority of Coahoma County (EDA).
The situation with DHS became public in early July with news reports about the resignation of then CEO Scott Christensen. DHS’ CFO Scott Goodin left his post in late July.
Stacker has attributed the significant losses to COVID and the surging wage demand for nurses, in large parts — two factors that have resulted in the medical center having to “right-size” its nursing staff and operate with only one medical floor.
To further alleviate the financial hemorrhaging, DHS closed its Neo-natal intensive care unit and cardiac rehabilitation department which were listed as “non-revenue producing venture.”
DHS operates hospitals in Clarksdale, Greenville and Senatobia.
Healthcare is a major industry in Coahoma County and a factor in attracting industry and jobs to a community. It is a key component to a community’s Quality of Life.
And Clarksdale is not the only hospital with concerns. Greenwood, Senatobia and most rural hospitals in the state are struggling. It has been estimated that almost half of the state’s 64 rural hospitals are at risk of closing or at least not profitable.
The complexity of the issue means there are no quick fixes. The Greenville hospital is undergoing a massive audit and has not said anything firm about its financial situation or what led to the hemorrhage of cash on the balance sheet.
At this point no one has said the Clarksdale hospital is in danger of closing, but the county and local leaders are looking at options.
Coahoma County owns the local hospital and has leased it to various entities over the past three decades who managed the facility. That lease is one of the binding agreements that have both Greenville and Coahoma County looking to keep the hospital open.
Hospital history
DHS announced in February 2021 that it was taking over management of the former Clarksdale hospital which became Northwest Mississippi Regional Hospital. It was DHS’s first hospital expansion under the newly named Delta Health System.
At that time DHS said its goal was to establish and strengthen physician relationships, enhance emergency room services, provide additional primary care with select specialties and increase awareness to the county and surrounding areas concerning care and services offered at the new hospital.
Janet Benzing was named the new administrator at Delta Health Northwest Regional in March 2021.
Delta Health System had been working with the Coahoma County Board of Supervisors about taking over management of the hospital facility from Community Health Services for some time.
CHS took over management of Northwest Mississippi Regional Medical Center from Curae in May 2019. Curae declared bankruptcy in August 2018 with hospitals in Clarksdale, Amory and Batesville directly affected. The Amory hospital was sold to North Mississippi Medical Center in Tupelo and the Batesville hospital was sold to a group of local investors.
The Coahoma County Board of Supervisors issued a statement in November 2018 saying they planned “to continue operations at Northwest Mississippi Regional Medical Center with the ultimate goal of identifying a new buyer for the hospital.”
Coahoma County signed a deal to transfer Northwest Regional Medical Center from Community Health System to Delta Health System, in mid-January.
Supervisors signed a letter of intent to shift its lease from Community Health System (CHS) to Delta Health Systems (DHS) out of Greenville, modify tax payments and get assurances on physical plant changes to the hospital.
The deal saw the remaining 14-years on the lease with CHS honored, taxes that would be paid by the hospital over those 14-years guaranteed and maintenance and approximately $2.3 million in improvements needed at the hospital satisfied.
Dollar amounts for the three key points of concern to the county are: a lease that generates approximately $500,000 a year; $900,000 in county, city and school taxes paid annually by CHS; and what are more than $2 million in renovation, improvements or demolition needed at NMRMC.
DHS has said it has invested $1.9 million in the local hospital.
Lease payments to the county by DHS are deposited into a Hospital Trust Fund designated for emergencies related to providing healthcare in the community. The fund currently has about $25 million in the account. The county can borrow from that fund and took $2 million from that account in 2020 to leverage work on the Jonestown bypass, county fire station and complete the new Justice Center and Coahoma County Jail.
DHS is a not-for-profit corporation owned by Washington County and as such does not pay property taxes. Coahoma County’s concern with no local representation on the DHS Board of Directors has also been discussed.
Healthcare Numbers
Supervisors hired Trilogy Healthcare Solution of Flowood as a consultant in 2019 to help them assess needs at the Clarksdale hospital and to study possible solutions to problems faced by the hospital.
Trilogy’s report to supervisors in October 2019 said the current 181-bed hospital in Clarksdale was built in 1952 and much of the infrastructure at the sprawling facility is in need of repair. The report also suggested the hospital footprint be reduced to about 50 beds.
The report said the hospital sees roughly 24,000 people annually through its emergency room, which acts as “the front door” for the hospital.
Northwest Regional was a Level 4 Trauma Center in 2019, meaning they could handle most emergencies and can perform surgery to stabilize patients before sending them to a Level 5 Trauma Center – the medical professions highest level of emergency care.
Northwest Regional was also touted as a primary stroke center and routinely offered a better outcome for patients who have had a stroke. The hospital was also listed an accredited chest pain center.
The hospital has a Labor and Delivery Suite, which includes two labor/delivery rooms, five regular labor rooms, two delivery rooms and a 23-bassinet newborn and intensive care nursery. Northwest Regional saw over 700 births in 2020 or about two a day.
One of the main concerns for Newson had been staffing and employee numbers at the Clarksdale hospital.
