NATCHEZ — On Friday afternoon officials from Natchez Regional Medical Center received much-needed approval from the Mississippi Development Bank.

Hospital CEO Scott Phillips said the MDB approved the hospital’s plan that would ultimately result in a loan of up to $3 million.

That loan will help to finance the hospital’s restructuring.

The approval will allow the hospital to use their accounts receivable department, valued at approximately $9 million, as collateral to secure the $3 million loan.

Since the hospital is a publicly owned institution it is subject to legal structures that do not allow it to be used as collateral unlike private businesses.

Phillips and hospital attorney Walter Brown first traveled to Jackson June 11 the meet with the MDBs credit committee to propose the hospital’s restructuring plan.

Phillips, at that time, said the two groups would not be able to meet again until July 9 to get full approval on the plan.

However Friday Phillips said the MDB essentially called a special meeting of the full board and unanimously approved the hospital’s request.

“We are very pleased the development bank called the meeting,” he said.

Phillips said he and Brown presented the bank board with an indepth proposal for restructuring the hospital before the approval was granted.

“It was well received,” Phillips said. “They wanted a lot of typical info bankers would want to know.”

The next step in the loan process is for the United Mississippi Bank to grant the hospital the actual loan.

Phillips said he believes the approval from the MDB will help to solidify the United Mississippi Bank’s odds of granting the loan.

Phillips said the loan approval from the United Mississippi Bank should come Monday.

“I believe based on this action we’ll get the approval on Monday,” Phillips said.

And the upcoming week is shaping up to be a critical one for the hospital.

On Tuesday the Adams County Board of Supervisors will interview two candidates to conduct a study of the hospital.

The study is considered an integral part of the restructuring process of since it will determine if the hospital should be leased or sold.

Part of the loan the hospital will receive will fund the study.

The supervisors will meet with candidates from the Horne Group and KPMG.

Phillips said both groups are qualified to conduct the study.

And while Phillips said he is hoping the board will vote to hire one group on Tuesday, some board members are taking a wait and see approach.

Board President Henry Watts and supervisors Thomas “Boo” Campbell and Mike Lazarus all said they are open to a vote on Tuesday but want to hear the proposals fist.

“It could happen,” Watts said of a vote on Tuesday. “We need to hear all the proposals and see what they have to say.”

Phillips said both Horne and KPMG have committed to finishing the study by the end of July if hired Tuesday.