Wednesday, August 28, 2024, 5:55 pm News Flash Archive

Yesterday, the Greenwood Leflore Hospital Board of Trustees held its regular monthly meeting.

The board approved renewal of the UMMC one year leases for the pediatric and obgyn clinic offices.

The board received the audit for the hospital pension plan for 2023. The audit included a "going concern" warning that the hospital may not survive as a going business, due to its well-known severe financial problems. The problem for the pension would arise if the hospital is no longer able to make annual payments to cover a shortfall in the pension investment funds. At this time, the pension is funded at 66.5%, indicating that the fund will be exhausted at some point in the future if the hospital is no longer able to make its annual payments. The net pension liability for the hospital is presently $16.5 million, down from $18.9 million in fiscal year 2022, due in part to improved performance of the invested funds.

The full 2023 pension audit report may be seen here: 2023 GLH Employee Pension Audit Report

According to the financial report reviewed by CFO Dawne Holmes, the Hospital had an overall loss of $437,000 in July. For the fiscal year beginning with October 2023, the overall profit is $2.322 million, largely due to the one-time receipt of over $5 million in "catch-up" MHAP enhanced payments for the last half of 2023.

At the end of July, the useable cash and equivalents is $5.09 million.

As of the end of July, the hospital still owes Medicare $2.63 million. The Medicare loan is being paid down at around $102,000 per month.

The board also approved the proposed budget for the upcoming fiscal year. The bottom line projected loss, including the required depreciation costs, will be $2.2 million. The cash flow is projected to be a net positive amount of $4.5 million.

The board then went into executive session, with the public and the press excluded.

The Board of Trustees meeting may be viewed here: GLH Board Meeting, August 27, 2024

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To review our reporting on GLH and its financial woes, please see here: Index of Greenwood Leflore Hospital news articles

John Pittman Hey
The Taxpayers Channel

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