Supervisors hear the case for Singing River sale at packed meeting. What happens next?

The decision is being hailed by some as the most important the Jackson County supervisors may ever make: Sell the financially-strapped Singing River Health System or keep it county-owned as it has been for nearly a century, a move that would likely mean a tax increase for residents.

At a packed Jackson County supervisors meeting Wednesday night, supporters of a proposal to sell the health system made their case for the sale of the hospital.

Hospital administrators said the sale is necessary to keep Singing River sustainable as it faces heavy financial challenges — and warned that, if it doesn’t, the county will have to step in and keep it solvent by raising taxes.

A recent valuation by the Jackson-based financial services firm Raymond James suggested the hospital would sell for $158 million to $238 million.

But some community members remain unconvinced — and are determined to bring the matter to a countywide vote.

Jackson County residents seeking a referendum on the proposed sale now have 21 days to gather 1,500 signatures on a petition in favor of a vote — an effort that has been spearheaded by a retired carpenter at the hospital, Irby Tillman.

“I’ve still not made up my mind yet, and this is probably one of the hardest decisions I’ve ever had to make since I’ve been on this board and, hell, probably in life,” Supervisor Randy Bosarge said.

The crowd filled the supervisors’ board room, with people standing in the aisles, and spilled out into excess seating at the ground floor of the building.

The meeting kicked off with a presentation from top Singing River administrators, including the hospital’s CEO, CFO, chief medical officer, and president of the board of trustees, explaining why they believe the sale is necessary.

The hospital executives described heavy financial headwinds, including a nursing shortage and rising salaries and drug prices in the wake of COVID-19. But they said discussions about the sale of the hospital were ongoing for years prior to the pandemic — and reflected the fact that, in their view, it is not feasible to operate a health system of Singing River’s size as a county-owned hospital.

“The county model has kind of fallen by the wayside,” said board president Erich Nichols.

What’s the impact of the sale?

Their case was buttressed by presentations from James Birdwell, the managing director of Raymond James. He described Singing River’s finances, and Jackson County chancery clerk Josh Eldridge described the potential impacts on the county of the decision to sell or to keep the hospital.

Birdwell said Raymond James’ analysis showed that the hospital needs a capital partner to address its significant financial challenges.

If the county does not sell Singing River, hospital representatives say the county must step in to assume the role of capital partner if the health system is to remain afloat.

Eldridge estimated that, in this scenario, the county will have to raise countywide taxes by 5 mills — the maximum that is permissible by state law — at a cost of $8.6 million a year to Jackson County taxpayers.

Speakers including Singing River retirees, current hospital employees, and leaders of the county’s business community gave speeches, mostly in support of the sale.

George Freeland, executive director of the Jackson County Economic Development Foundation, said his organization had decided after a careful review to endorse the sale.

“Maintaining [Singing River’s] extraordinary level of healthcare delivery is of concern to us and its of specific concern to our economic interest,” said Freeland.

Paige Roberts, head of the Jackson County Chamber of Commerce, endorsed the sale via a statement read by Singing River trustee Christian Hartley.

This story was originally published August 18, 2022 at 10:05 AM.