Leflore County supervisors have rejected a proposal that would have allowed the county to provide additional emergency funding to Greenwood Leflore Hospital.
On Monday, the Board of Supervisors voted 3-2 against a resolution stating the county’s intent to borrow up to $10 million as stop-gap funding for the financially endangered hospital.
Board President Reginald Moore, District 4’s Eric Mitchell and District 5’s Robert Collins voted against the measure, citing concerns about the size of the tax increase the borrowing might require.
District 1 Supervisor Sam Abraham introduced to the board the idea of establishing the $10 million line of credit with local banks during last week’s meeting. At that time, the board tabled the discussion to provide time to consider Abraham’s proposal.
On Monday, the board heard from Tray Hairston, a lawyer with the Ridgeland-based firm Butler-Snow LLC, and Jamie Holloway, a municipal adviser with Government Consultants Inc.
Hairston explained to the board that the proposed resolution would indicate to the state-run Mississippi Development Bank that the county was agreeing to raise taxes to finance the debt.
According to county officials, a $10 million line of credit would require a tax increase of 5 mills. That would equate to a 3% tax increase for property owners in Greenwood and Itta Bena, which also pay separate municipal levies, and 4% for residents in other parts of Leflore County.
Hairston said, however, that the county would not be required to implement the tax increase unless it committed to borrowing the money.
Abraham said he didn’t anticipate the county needing to borrow the full amount. “I don’t anticipate anywhere near a 5-mill levy,” he said. “I anticipate just enough to get us to where the hospital will know more about their financial situation.”
Hairston explained, however, that when the county sets its tax rate for the budget year beginning in October 2023, it would have to add the entire 5 mills, regardless of how much money the county had borrowed at that point, if all of the necessary steps to access the money had been completed.
Mitchell said he didn’t want to place an unnecessary burden on taxpayers, saying the county would be “putting a 5 millage on the citizens, and if we come to the conclusion that we don’t need that entire $10 million, or it’s not used, it’s unfair to them.”
Collins added that he did not want to do anything that would suggest to the Legislature that the Greenwood hospital did not need the state’s help in order to survive its financial crisis.
“I don’t want the perception to be out there that we’re going to have enough money to save the hospital,” he said.
The county has so far this year provided the hospital, which is jointly owned by the county and the city of Greenwood, with $2.25 million in emergency funding. Those funds came out of the county’s allocation of federal American Rescue Plan Act monies. Greenwood also has kicked in $2 million in cash or free utilities.
The infusion has bought the nearly insolvent hospital some time but, according to its latest projections, only enough to last until the end of April without additional local or state help.
The Legislature is considering a proposal to provide $80 million in emergency grants to help hospitals statewide, and the state Division of Medicaid is looking at formula changes that would increase its supplemental payments to hospitals.
Meanwhile, the Greenwood hospital is seeking to be designated as a “critical access” facility, which would provide an estimated $11 million to $14 million in additional reimbursements annually from Medicare. The application is considered a critical element in the hospital’s long-term viability.
The fate of the application, though, is not expected to be known before mid-summer, leaving the hospital still facing several months of having to scrape up enough cash to keep its doors open.
Abraham said his proposal, which received support only from District 3’s Anjuan Brown, would serve as a backup if aid from the Legislature fell through or proved insufficient.
In other business, the county:
- Voted 4-1 to enter into a contract with Parkwood Behavioral Health System in Olive Branch to house indigent individuals who are suffering a mental health crisis and need to be committed for treatment.
Abraham cast the dissenting vote, citing concerns over where the money for the $750-per-day contract would come from.
- Voted 4-1 to approve the hiring of four full-time employees in juvenile court. Abraham cast the dissenting vote. “I looked at the budget earlier, and it isn’t in the budget,” he said.
- Voted to disburse $45,000 in ARPA funds to the Greenwood Community Center for new heating and air-conditioning units installed in 2022. The assistance was approved last year but could not be distributed until the work had been completed.
- Approved the appointment of Abraham, Moore and Collins to the executive board of North Central Planning and Development District.
- Contact Katherine Parker at 662-581-7239 or kparker@gwcommonwealth.com.
