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GLH loses $2.37 million in September, $17.98 million for FY 2022

Tuesday, October 25, 2022, 4:14 pm News Flash Archive

The Greenwood Leflore Hospital Board of Trustees held its regular monthly meeting today.

The board approved the payment of $26,500 to Horne LLP for preparation of the FY 2022 cost report. It also approved engaging Horne to perform the FY 2022 audit at a cost of $100,000.

The board ratified the lease agreements with UMMC for the OB/GYN Clinic and the Children's Clinic, as well as for the sale of some equipment and furnishing at the Children's Clinic to UMMC. At least one board member voted against ratifying the agreements.

According to the financial report given by Mrs. Dawne Holmes, the Hospital had an overall loss of $2.37 million in September. Operating expenses were $7.78 million, while operating revenue was $5.16 million.

September 30 was the end of fiscal year 2022. For the concluded fiscal year, the hospital lost $17.98 million, up from the 2021 fiscal year loss of $11.00 million. The overall loss in 2022 would have been far worse but for the receipt of $9.6 million in grants that the hospital received during the 2022 fiscal year.

At the end of September, the cash and equivalents were $6.60 million. The net cash burn for September was $2.43 million. Of the $6.60 million of cash left, $3.5 million cannot be touched legally because it is in trust to cover the malpractice insurance and as security on the cooling tower financing note. That would mean that in reality, at the end of FY 2022, there was only $3.1 million in cash left to spend.

In September, Medicare retained $644,000 in payments for the repayment of the short term loan. The hospital still owes Medicare $5.61 million.

This month, the hospital received the demand letters from CMS regarding repayment of the Medicare loan, and the hospital has applied for a hardship delayed repayment plan over a 60 month period at 4% interest.

The board then went into executive session, with the public and the press excluded for 70 minutes.

After the executive session, it was reported that the board approved a "management agreement related to the emergency room," but no more details were disclosed.

The Board of Trustees meeting may be viewed here: GLH Board Meeting, October 25, 2022

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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