Print this story | E-mail story | This story has 37 comments Add your own | iPod friendly
Governor signs bankruptcy bill
Published Tuesday, April 1, 2008
NATCHEZ — With the stroke of a pen Gov. Haley Barbour signed Bill 3186 Monday evening, allowing Natchez Regional Medical Center to legally declare bankruptcy.
In February, the hospital revealed it had large-scale financial troubles.
Since then, the hospital’s administrative staff has been restructured and all employee salaries have been cut by 5 percent.
Later, the hospital’s board of trustees announced plans to pursue bankruptcy as a means to halt the hospital’s downward financial spiral.
Board members said a Chapter 9 bankruptcy declaration would allow the hospital to keep creditors at bay while exploring other means of righting the hospital. However, the hospital could not legally declare bankruptcy until the bill allowing bankruptcy was signed into law.
On Monday the board got its wish.
In March, the board hired Eileen Schaffer, an attorney specializing in bankruptcy law in anticipation of the governor’s approval of Bill 3186.
Schaffer said it’s unfortunate for the hospital that bankruptcy has such an unfortunate connotation.
“This is a positive step for the hospital,” she said.
Schaffer said bankruptcy will allow the hospital to restructure payments of its debts while still offering high quality care to the community.
“Things will be business as usual,” she said.
In addition to debt restructuring, the hospital will also have an opportunity to review current leases and contracts with the option of cancellation if necessary.
“Some (contracts) may need to be rejected to move forward,” she said.
Hospital board attorney Walter Brown said some time this week the board will likely vote to allow Schaffer to file a petition in bankruptcy court for the proceedings to continue.
Once the petition is filed the courts will set a date for the hospital to submit its bankruptcy plans.
Brown said the hospital could have as much as three to six months to submit a plan.
The plans essentially outline the hospitals plan to pay creditors during restructuring.
“This is the first step in turning the hospital around,” he said.
And while the hospital is just starting its turn around, Brown credits legislators with making it happen so quickly.
Bill 3186 went from bill to law in just 19 days.
Brown said aside from emergencies he has never seen a bill become law so quickly.
Comments
Posted by NatchezEnema (anonymous) on April 1, 2008 at 12:42 a.m. (Suggest removal)
Taaaaaa Daaaaaaaa! Told you so! Business as usual? Only the Democrat and Mr Brown could put such a positive spin on something so horrendous. I just don't see how these people got away with something like this for so long. It wont be business as usual when suppliers want cash up front for their products from a broke hospital. I know several vendors who are cutting them off, cutting their losses and not looking back. People, we have still not heard the rest of the story on this hospitals debt. This place is going to be a lawsuit waiting to happen when somebody rolls in with a true emergency and doesn't get professional service from a demoralized staff. I still say somebody should have ended up in jail on this grand deception. Somebody cooked the books and gets to walk away, people who worked there knew it, and I bet people on the board knew it. Think what would happen if you or I cooked the books in business or taxes for 5000$, much worse for millions. We would end up in jail. Just goes to show how out of touch our leadership is with business and major employers in this area. If they couldn't have seen this heading down the road, I guess a U.F.O. could land on city hall and they wouldn't know it. And of course the Democrat just writes down what they say and puts a pretty light on things. Why can't you guys contact every board member and ask them to comment on what they knew and when they knew it. Put them on the record! Natchez deserves to know! My GOSH! This a DAMN TRAGEDY UNFOLDING and you guys put some fluff like this in the paper. Are you guys scared of stepping on some toes? It is obvious, OBVIOUS! That what is being told to the people and reported by you guys to the people of Natchez is not the whole truth. Does anybody at the Democrat have any drive, desire, or reporting savy to get to the bottom of this story and call out the true villians? How can this town move forward and grow with shenanigans like this going on and nobody held responsible or accountable? This kind of stuff makes people not have faith in the business leaders or goverment in this town when things like this happen. How inept can you get.
Posted by shedevil (anonymous) on April 1, 2008 at 4:38 a.m. (Suggest removal)
the hospital board should be ashamed of theirselves!!!!i think they should all resign for not doing the job they were paid for.
Posted by Bozo (anonymous) on April 1, 2008 at 5:54 a.m. (Suggest removal)
I have a novel idea. Patients should pay for the care they receive. If they don't, sue them. Read the legal notices, the hospital in Ferriday does it all the time.
Posted by snatchez (anonymous) on April 1, 2008 at 7:05 a.m. (Suggest removal)
the management was hired in the 1990's and by the board of supervisors. Why isn't the management company responsible? The trustees only hear what is reported to them so it is not their fault. They are the ones who need to be called. The CEO was moved by the management company very swiftly from the area to escape questions. Why didn't the supervisors step in and help? They get a report on the hospitals.
Posted by adamstanton (anonymous) on April 1, 2008 at 7:08 a.m. (Suggest removal)
Loss of good jobs is the reason, a hopital will go broke dealing with medicare and medicaid patients only. If ya don't get some jobs in there ya going to look like Port Gibson or Fayette in a few years.
Posted by Peace007 (anonymous) on April 1, 2008 at 7:47 a.m. (Suggest removal)
Does this mean that all the people previously owing money no longer have to pay their debt to Natchez Regional? Or do they still have to pay? LOL, I can only imagine the conversations this should stimulate when a debtor is called for collections.
Posted by gottabehappy (anonymous) on April 1, 2008 at 7:51 a.m. (Suggest removal)
Thanks for nothing board.
Posted by Peace007 (anonymous) on April 1, 2008 at 8:03 a.m. (Suggest removal)
read your nic over and over again and do the ahh meditation...imagine sunshine in your heart....then, you'll just hafta be...don't worry, be happy. At least the hospital won't have to close.
Posted by fay2ntz (anonymous) on April 1, 2008 at 8:04 a.m. (Suggest removal)
Okay Bozo, let's be real here. Yes some of the issues regarding money are the fact that some patients don't pay their bills. However, you have to remember that some people aren't as wealthy as yourself to pay what is left even after the issurance has paid their part. Also, last year my mom went in the emergency room after a fall because she thought her foot was broken and was given an EKG and never even received an x-ray. She was told that she had just gotten a "sting" to her nerves. Two days later she was still in pain and went to her doctor in Jackson and was told that the foot was indeed broken. Some of the problems I have had is being held in the ER or my room way past the time I was told I would be out. Being given medication or tests that other doctors ( most from right here in Natchez) can't understand why I was given said tests and/or medication. So, please let's not place blame soley on patients. Let's look at the fact that just last year this same hospital had so much money and now this year are what Millon's in debt, Please. NatchezEnema I agree that the ND needs to stop using the paper to keep personal friendships and report objectively and most importantly, with honest in your face reporting. There are alot of things going on here in Natchez. The ND needs to report them just like they did with the Circuit Clerk issue here. Also, this hospital sends one bill to your home and if it is not paid in full within 30 days then they send it right over to Receiveable Solutions, another company that one day is going to get in serious trouble for their many violations, ex. the HIPPA law. Did you know that this hospital sends to any collection agency working on their behalf a complete detailed report of what was given, performed, and tested on you? Anyone anywhere can see what should be or should I say, is very personal. So please let's stop trying to save some of your friends or family who maybe on the board from looking like the clowns they are appearing to be.
Posted by braqui (anonymous) on April 1, 2008 at 9:14 a.m. (Suggest removal)
We can soon say goodbye to Receivable Solutions, with NRMC going bankrupt they will be going bankrupt soon too.
Posted by thetinman (Keith Reynolds) on April 1, 2008 at 9:41 a.m. (Suggest removal)
Socialize medicine in this country. We would not have to worry about stuff like this. OH yes, I have heard about the board. They are about qualified for a most part to being on a Hospital board, then H.R. Puff n Stuff is ready to being President of the U.S. I heard of some of there qualifications, and trust me!!! N.D. do some scoop man, don't be a chicken, get to the real issue. report the qualifying background of the Hospital Board of Directors. I bet you will have a greater then great story to report.
OPPPS My bad, but you will not print stuff that doesn't read very well to make changes. THANK GOD FOR US BLOGGERS. To bad many people in our community doesn't have the net.. The Bloggers will have you beat on the true news in the area. Possibly the local government. People will read what a crock it all is being run. SUGARCOATED
Posted by destiny (anonymous) on April 1, 2008 at 9:41 a.m. (Suggest removal)
With a 5% cut the workers have to pay for the mismanagement of hospital funds. Bring the culprits to light and make them repay what they have taken. This has been going on since year one. The greedy get and the needy keeps on needing. That's Natchez's motto.
Posted by beammeupscotty (anonymous) on April 1, 2008 at 10:37 a.m. (Suggest removal)
I would like to know how much bonus was paid to management last year since they claimed to have made a profit.
Posted by roberth33 (anonymous) on April 1, 2008 at 12:43 p.m. (Suggest removal)
What would be better is to only treat paying customers. That would go a LONG way toward solvency for all hospitals.
People need to be FORCED to buy health insurance. So long as they get treatment for free, why would they pay for health insurance.
And spare me the "people are too poor" flame. It is a matter of priorities. If I have to skrimp and save to get insurance so should you. Go back to the old days and move in with your family and cut out the extra rent. Get rid of cable. Get a second job flipping burgers. Mow lawns.
This gimme gimme for free mentality is coming to an end. It is going to take a hard econiomic lesson that is going to hit us all soon to show people that govt cannot pay everyone's way.
Personal responsibility is the name of the game.
Posted by ghost (anonymous) on April 1, 2008 at 1:29 p.m. (Suggest removal)
just remember.....good things do happen in Natchez!.....
Posted by 2runnels (anonymous) on April 1, 2008 at 1:51 p.m. (Suggest removal)
roberth33 - what you are suggesting is ILLEGAL! Hospitals can not treat patients based solely on their ability to pay. Personal responsibility is a fine ideal... But you know NOTHING about hospital collections. So don't talk about what you don't know about. And paying for insurance is not the only factor. Insurance companies do not insure everyone.
Don't get me wrong here - I see lots of liability on the hospital's part, but your suggestions will not legally work.
Posted by roberth33 (anonymous) on April 1, 2008 at 3:27 p.m. (Suggest removal)
Well 2runnerls, Then we need to change the laws so it is not illegal.
It is amazing how quickly people can come up with money when they can't get something for free.
The problem with society today is too many people with free housing, free food, free healthcare.
You have to pay your way through life. Get off your butt and take care of yourself. (unless you have a physical or mental handicap)
How is it illegal aliens can find work here in this country, and yet people are getting welfare, foodstamps, free housing... Clearly people would rather get a free handout than have to pick a crop. The free handout days have to end. NOW.
Posted by lambchop (anonymous) on April 1, 2008 at 3:46 p.m. (Suggest removal)
I wasn't going to write anything on this subject until I got to the one suggesting socialized medicine. Give me a break. Complaints are listed about the quality of health care at NRMC but if you were to go with socialized medicine, you may have to wait for months to be treated and then only in certain hospitals. A friend from Canada (you know they have this) had to come to the States to get emergency help because they could not even be seen at their medical facility for months. If that happens, I hope all those who are in favor of it have to eat their words. I don't have insurance now but still favor the system we have over socialized medicine. Read read read is all I can say. Investigate it. You will see.
Posted by roberth33 (anonymous) on April 1, 2008 at 3:46 p.m. (Suggest removal)
who pays your medical care bill lampchop?
Posted by ghost (anonymous) on April 1, 2008 at 4:52 p.m.
(This comment was removed by the site staff.)
Posted by straightshooter1 (anonymous) on April 1, 2008 at 4:53 p.m. (Suggest removal)
roberth, if lambchop is like me, he pays his own. If I go to the doc, which isn't often, I pay...noone else. I would do the same if i had to go to the hospital. Thank God I haven't had to go. I don't have health insurance because the companies won't insure me. Nothing major wrong...just hbp and cholesterol and a little overweight. But if you saw me you wouldn't think I was fat, just stocky.
Now, I tell you this because I am an insurance agent and my own companies don't want me for the reasons I listed. I still don't want socialized medicine. It would be the worst thing that could ever happen to medical care in this country. What needs to be changed are the guidelines used for selectively insuring people. And the companies shouldn't be allowed to penalize those that have minor problems and want insurance. Within a group everyone has to pay more because of one or two people with health issues and that isn't fair either. So, yes there are problems with our healthcare system but not to the point where we need to be like some of these other countries with their failed systems.
Posted by roberth33 (anonymous) on April 1, 2008 at 5:06 p.m. (Suggest removal)
Oh I agree. I am not for socialized medicine per se. I def. think something has to change. Healthcare costs are through the roof and until the pharma and healthcare lobbyists are out of the back pocket of the Congress we will never see healthcare reform. If everyone was forced to buy health insurance and the ins. cos. could not block or drop people who filed claims (and who didnt smoke, take drugs, or ride a motorcycle) then we could see a huge reduction in healthcare costs because the ins. cos. would pressure drug cos. etc to lower rates.
Michael Moore had a great movie on socialized health care and Frontline (i think) on PBS is going to do something on it in May. I think we need a happy medium.
People like me paying for insurance and paying for treatment out of my pocket while others paying nothing for insurance nor treatment while getting it all for free is NOT a solution.
Posted by geauxtigersgeaux (anonymous) on April 1, 2008 at 5:22 p.m. (Suggest removal)
this area is too small for so many hospitals. NRMC gets stuck with the people who are unable to pay the bills then they eat them later.. i agree with Bozo.. if they don't have the money sue them get some kind of profit out of their benefits for the patients. all i can say is it is going to go all down hill from here i just hope the NMRC can pull out and prove all of us wrong
Posted by redusmfan (anonymous) on April 1, 2008 at 5:48 p.m. (Suggest removal)
Goodbye NRMC. It was nice while you lasted.....lol....
Posted by lambchop (anonymous) on April 1, 2008 at 6:03 p.m. (Suggest removal)
answer to question about who pays for my health - I do. My insurance ran out April 2007 and I continue to see my doctor as scheduled. Plus I have to go to eye doctor every 6 months and that is paid out of my pocket. I cut back where I have too, but that has not been much. At least I am no longer taking treatments which were very expensive (had insurance then) but still cost me a lot. Dr Rodriguez worked with me very nicely and assisted as much as he could. Others have worked with me. You do have to talk with them up front and negotiate with them (politely) and most have been willing to work with me. I am a HIGH RISK so cannot afford the insurance that has been offered. I want quality of life rather than longevity of life. My mom wants to live to 100 and she will be 89 Thursday and is in better health that her children. Everyone needs to pay as much as is possible but the medical people can't gouge either.
Posted by VillageIdiot (anonymous) on April 1, 2008 at 6:27 p.m. (Suggest removal)
Basically, there's no real healthcare in Natchez anymore, with or without insurance... and few can afford insurance anyway. If you really need professional advice/treatment... saddle up and go to Jackson, Baton Rouge, Dallas, Atlanta, etc, etc... and be prepared to open up your wallets/pocketbooks and your life savings. After my 80-year old mother fell and I took her to NRMC for a simple x-ray, we ended up "refusing treatment" and leaving. After receiving nothing but excuses and being ignored for 2 hours plus (the Dr. even quipped, "Don't y'all run off now"...ha ha) we'd seen enough and limped away. Fortunately, she hadn't broken anything and that was just a lesson learned.
Posted by VillageIdiot (anonymous) on April 1, 2008 at 6:31 p.m. (Suggest removal)
By the way... the FIRST thing we did was spend a half an hour providing the necessary health insurance information to the hospital. A paying customer... leaving... unable to get basic treatment.
Posted by supertrucker47 (anonymous) on April 1, 2008 at 6:40 p.m. (Suggest removal)
WHAT WILL YOU DO NOW HALEY?RAISE OUR TAXES?SOMEBODYS GOT TO PAY FOR THIS.WELL ITS TIME FOR YOU TO GO TO HALEY.THANKS TO YOUR STUPIDITY BY SIGNING THIS BILL.THIS WILL BE YOUR LAST TERM.GOOD-BY!
Posted by redusmfan (anonymous) on April 1, 2008 at 6:52 p.m. (Suggest removal)
My mom still lives there and she comes to Jacskon for her healthcare. she is retired(from IP) and has health insurance and medicaid supplement insurance. She just does not like the quality(or lack of) care that she has recieved in the past and found a place she could get the help care she feels she deserves.
Posted by VillageIdiot (anonymous) on April 1, 2008 at 6:55 p.m. (Suggest removal)
Don't be too harsh on the ol' boy, SuperTrucker. After all, he did give 15 million tax-payer dollars to Rentech. As Walter Kerr said... "Half the world is composed of idiots, the other half of people clever enough to take indecent advantage of them."
Posted by VillageIdiot (anonymous) on April 1, 2008 at 7:45 p.m. (Suggest removal)
Red, my Mom's health insurance is also "retired I.P." with Medicaid Supplement... and it didn't seem to be worth the paper it was printed on at NRMC. Be happy if your Mom has found a place where she's comfortable with the care she receives. I hope we can say the same when the time comes.
Posted by shedevil (anonymous) on April 1, 2008 at 8:02 p.m. (Suggest removal)
I wonder what effect this bankruptcy will have on our homestead excemption??? I think I read awhile back that it was used to get a loan for the troubled hospital....if im not mistaken mr grennell spearheaded that deal
Posted by redusmfan (anonymous) on April 1, 2008 at 10:26 p.m. (Suggest removal)
taxes will go up. It will be blamed on NMRC, but the funds will be used for another project that will be needed by the time the tax gets into the general fund...be ready
Posted by rushinghjr (anonymous) on April 1, 2008 at 10:56 p.m. (Suggest removal)
(SUPER) I LIKE HALEY!
Posted by county123 (anonymous) on April 2, 2008 at 4:45 p.m. (Suggest removal)
Anyone been reading the Neshoba Democrat? The Neshoba County Hospital is county owned and managed by Quorum just like NRMC. Their Quorum CEO & CFO have left recently also.
That hospital was suffering a major loss each year but they too claim to have made a profit last year, just as NRMC had been reported.
Interestingly they have not produced an audit on their books to back up this revenue. Audit is three months over due... What are they hiding there in Neshoba County and why did their CEO & CFO leave if things are going so well?
Will they be the next Quorum run hospital to file bankruptcy now that NRMC has opened the door with the law passing in Mississippi?
http://www.neshobademocrat.com/main.asp?...
Quorum's pattern seems to only look for short term, not long term solutions, oh and to get their paycheck no matter what, even if the hospital employees have to take a pay cut to pay them.
Posted by hopefloats (anonymous) on April 5, 2008 at 11:06 a.m. (Suggest removal)
I would like to know if the hospital is up for grabs will the Board be soley responsible for who gets to buy it? They hired Quorum.
Posted by hopefloats (anonymous) on April 5, 2008 at 11:22 a.m. (Suggest removal)
Snatchez if the Board of Supervisors not the trustees are the responsible party for hiring Quorum then i think they need to step forward and file litigation against Quorum. Having said that i can only hope that The Board of Supervisors makes better decision for the future of the hospital than they have in the past.
Post a comment (Terms of Use Policy)
(Requires free registration.)