Rick Patrick, Greene Publishing, Inc.
During the regular scheduled meeting of the Madison County Board of County Commissioners on Wednesday, Dec. 14, the commissioners were presented with a request from the Madison County Memorial Hospital (MCMH) to forgive a debt of $151,614.32.
On Wednesday, June 17, 2009, the Board of Madison County Commissioners agreed to loan $151,614.32 to the MCMH in order to buy endoscopy equipment. According to the minutes of that meeting, a motion was made to “loan by resolution and promissory note, Madison County Memorial Hospital $151,614.32 over a period of two years at a rate of interest equal to the State Board of Administration.”
In May of 2015, MCMH began providing endoscopy services to the community.
According to a letter from MCMH Board Chair, Shirley Joseph, “our small hospital absorbs uncompensated care at an average of $3.1 million annually....We are trying to survive all of the Medicare, Medicaid, and insurance cutbacks.”
Joseph's letter also points out that the construction of the new hospital, which opened in August of 2014, was made possible by a USDA loan. For the first two years, only interest was required to be repaid on that loan. Beginning in 2017, interest and principal must be paid. Joseph anticipates the one half cent sales tax revenue generated will be sufficient to make the 2017 and 2018 loan payments of an estimated $1 million. However, beginning in 2019, Joseph expects the hospital will have an estimated shortfall of $250,000. “MCMH's senior management is working diligently to position the hospital to meet the debt service's expected shortfall,” stated Joseph.
For these reasons, the hospital is requesting the County Commission forgive the loan.
At the Dec. 14, meeting Commissioner Rick Davis expressed concerns about the hospital's request, especially without getting more financial information from the hospital. Commissioner Ronnie Moore suggested a possible partial payment from the hospital if the hospital could not make the full payment. The board agreed, by consensus, to re-agenda the matter until January. This item could be on the agenda during the meeting scheduled for Wednesday, Jan. 11, at 9 a.m or on Wednesday, Jan. 25, at 6 p.m.