Leaders approve $3M loan for Natchez Regional Medical Center sale

Published 12:11 am Tuesday, September 16, 2014

NATCHEZ County leaders signed a $3 million loan Monday to help finalize the sale of Natchez Regional Medical Center.

The loan will pay administrative fees to close out the sale of the county-owned hospital and fulfill a requirement of a plan submitted to the bankruptcy court, Adams County Board of Supervisors attorney Scott Slover said.

Community Health Systems, the owners of Natchez Community Hospital, has agreed to purchase NRMC.

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Supervisor Mike Lazarus, who conducted Monday’s board meeting in the absence of board president Darryl Grennell, didn’t sign the agreement with a smile on his face.

“I wasn’t happy about it, but I signed it,” Lazarus said. “But I didn’t have much of a choice did I? I could have either signed that, or we could have killed the sale, but the sale has to go through.”

Lazarus told board members that he was going to continue looking into details of the hospital sale, including why payments of nearly $1 million were made to Scott Phillips — the consultant hired to help sell the hospital — after the bankruptcy was filed.

“Just since the bankruptcy, Scott Phillips has gotten $745,000, but it’s probably closer to $1 million now,” Lazarus said. “What I saw in a post petition filing was that some people have gotten paid a total of $1.4 million.

“It’s just not right.”

Lazarus said he hadn’t shared it with the board until Monday, but said he’s contacted the Attorney General’s Office three times for what he believes are discrepancies in the hospital deal.

“When I smell something that doesn’t smell right, chances are it’s not right,” Lazarus said. “I want to know how that money was spent.”

Lazarus also instructed Slover to research how the county can ensure that hospital employees receive all money they are owed through the Public Employees Retirement System. The system requires employees put up 9 percent of their earnings and the employer is required to match with 15 percent.

When the hospital filed for bankruptcy in March, PERS was listed as one of its creditors with back payments owed from November 2013 forward.

After meetings with PERS representatives last week, NRMC employees were told the employer’s match had not been paid into the system even after the bankruptcy was filed and that the last 10 months of their employment may not count toward their retirement.

Slover said he was going to speak with PERS representatives to find out exactly what the situation was and how, if at all, the county could help the employees.

But Slover also said the sale of the hospital can’t be put on the backburner at the moment.

“Right now, the goal is to get the bankruptcy plan achieved,” Slover said. “We have to keep our eyes on what’s the solution for a really bad situation.

“I’m going to do whatever I can to straighten that out … but right now we have to stop the bleeding.”

The motion to authorize Lazarus to sign the $3 million note was approved unanimously.

NRMC filed bankruptcy in late March, in the midst of an effort to sell the county-owned hospital. The sale was officially awarded to CHS last week, though it is pending the approval of the bankruptcy court.

If the court approves the sale, it will close Sept. 30.