Talks regarding specifics of a partnership between Greenwood Leflore Hospital and the University of Mississippi Medical Center have not been held yet, says GLH CEO Jason Studley.
Still, he said, both sides are engaged in an open dialogue in the hopes of ensuring preparedness and moving through the process as quickly as possible.
He said it is difficult to establish a timeframe on how long the hospital can last on its cash reserves but estimated that it could extend to the end of the year with additional action.
Discussions of a potential partnership were announced last week, although the details of what that partnership would look like haven’t been determined.
After attending a meeting with the hospital board last month, Greenwood City Council President Ronnie Stevenson said a lease had been discussed but that could change.
Any partnership between the hospitals would require the approval of the Greenwood Leflore Hospital Board, the City Council, the Leflore County Board of Supervisors and the Mississippi Institutions of Higher Learning.
On Friday, the hospital released its May financial report, showing a $3.1 million loss. For the current fiscal year, the hospital has lost $8.9 million.
The hospital’s cash reserves are down to $13.8 million, a decrease from $16.6 million in April.
The reserves include $8.9 million in advanced Medicare payments, a loan that the hospital is paying back at a rate of roughly $1 million per month.
Facing a dire financial future, the hospital has taken several measures to reduce expenses, including laying off 30 employees in May.
Studley said these recent measures are not yet reflected in the budget report.
“Our expenses are coming down, but our revenues are coming down faster,” he said. “Every plan that we’ve put into place, we’ve been able to save on expenses, but unfortunately those revenues just have not come back.”
Net patient revenues were $5.6 million for May, down from $7.2 million in April.
“The changes that we’ve put in place are just what we have to do in order to remain viable for as long as we can until a solution can come into fruition,” he said.
Additional measures to reduce costs even more are dependent on how quickly talks with UMMC mature. If the time frame is extended, he said, additional cuts may have to be made.
Studley said interactions with UMMC representatives have been positive so far.
He said he thinks a partnership with the right circumstances “would secure health care services in the market for generations rather than worrying what it’s going to look like one year to the next.”
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com.
