Northwest Mississippi Regional Medical Center has taken another step in its effort to avoid closure.
When Curae, the company running the hospital declared bankruptcy in August, the hospital was in danger of being shut down in December. A bankruptcy hearing was held in Nashville on Oct. 23 where a deal was worked out to keep the hospital open.
The Coahoma County Board of Supervisors and Community Health Systems issued a joint statement on the matter Tuesday.
“Affiliates of Community Health Systems are working with the Coahoma County Board of Supervisors on plans to continue operations at Northwest Mississippi Regional Medical Center with the ultimate goal of identifying a new buyer for the hospital,” the statement reads.
“Today, the parties reached a tentative agreement for a Community Health Systems affiliate to take over operations of the hospital on December 10, 2018 with a focus on improving the financial position of the hospital. The parties will provide additional updates as details are finalized.
“The Coahoma County Board of Supervisors appreciates CHS and its cooperation in helping to ensure that the residents of Coahoma County and surrounding areas continue to have access to quality health care through our hospital. The board looks forward to working with CHS to improve the hospital’s clinical and financial operations.”
The Board of Supervisors has passed a resolution prior to the hearing in Nashville saying the county would run the hospital, if necessary, to keep it going.
As it turned out, that was not necessary as a series of Board of Supervisors meetings were held to officially approve the plan to keep the hospital open.
At the most recent meeting held on Monday, the Board of Supervisors approved wiring $1,239,565 out of the hospital reserve fund to Curae to pay Northwest Mississippi Regional Medical Center to meet the employee payroll deadline.
A 30-day healthcare emergency declaration was unanimously renewed at a special called meeting last Thursday prior to approving the payment for hospital employees.
The healthcare emergency declaration allows hospital reserve funds to be utilized for things such as hiring lawyers and consultants. To deal with emergency, the board must find there is a healthcare related emergency due to the bankruptcy of the operator of Northwest Mississippi Regional Medical Center closing.
“We need to renew an emergency declaration every 30 days. Today is Nov. 1,” said Board of Supervisors attorney Tom Ross on Oct. 31. “This would be an easy day to do it and remember it on Dec. 1.”
Another Board of Supervisors meeting has been called for 4 p.m. Nov. 14 to approve wiring money from the hospital reserve fund to Curae for the next pay period before CHS takes over on Dec. 10.
“They (Curae) had the money for other stuff – all the other stuff involved in the overhead, but the bank that was loaning them the money to operate through this bankruptcy deal, after the bankruptcy, they didn’t have enough and were going to shut it down,” said Board of Supervisors president Paul Pearson, noting the fund should have $37 million to $38 million remaining at the end of the month.
“Those numbers have to match exactly to the penny the payroll. We’re not giving a Curae a cent for nothing else. It’s strictly Clarksdale, Clarksdale only hospital, Clarksdale’s employees here in Clarksdale. That’s it.”
“At the end of the payroll, we should be exactly to the penny.”
Pearson said there was a verbal agreement for CHS to take over the hospital for up to one year beginning Dec. 10 and the Board of Supervisors will be working with the consulting firm Trilogy Healthcare Solutions to take the next step.
“We bought some very extended time here so we’re going to utilize this time to get Trilogy in there, look at everything and see what we can do. CHS, they could have very easily told us, we’ll see you in court,” Pearson said. “They did call us. They are willing to honor the lease. They are willing to step in and do what they’re supposed to do, which I want everyone to know.”
CHS will operate the hospital, make payroll, get supplies and pay the light bill.
“This is a good opportunity,” Pearson said. “It shouldn’t be how we had to get here, but this is a great opportunity to get it right once and for all.”
Pearson said the hospital will not necessarily make cuts, but changes are needed.
“We’ve got to generate revenue,” he said. “That’s what we’ve got to do. We’ve got to generate revenue. We’ve got to make this hospital profitable again. It’s got to sturdy and steady for the employees so they have a job.”
In whatever capacity the Board of Supervisors may be in involved with Northwest Mississippi Regional Medical Center going forward, Pearson said he does not expect to be involved with hiring and firing employees.
“The less government involvement in any business, in Paul’s opinion, we’re better off,” he said.
Pearson said he has communicated with Joel Southern, the CEO of Northwest Mississippi Medical Center and he expects him to remain in his position.
