Supervisors will pay for care but won't contribute to SRHS pension plan

PASCAGOULA -- The Jackson County Board of Supervisors on Monday agreed to pay $13.6 million "to support indigent care" but won't contribute to the faltering pension plan at Singing River Health System.

That payment also hinges on approval by the SRHS Board of Trustees and settlement of pending litigation by people in the pension plan. An attorney for some of those people says they have no intention of settling.

They want the pension plan fully funded but an attorney for the county said the supervisors can't do that.

"What Jackson County can't do is contribute ... to a pension plan because that is unconstitutional in Mississippi," said special counsel William Guice.

The money from the county is aimed at preventing default on millions of dollars in bonds at SRHS that are guaranteed by the county. SRHS would then be able to resume pension contributions, which it hasn't done for years.

"No one can benefit unless the hospital survives," Guice said. SRHS has had millions in unpaid patient bills.

The SRHS Board of Trustees also will be replaced and a turnaround firm hired, Guice said. The SRHS Board would have to approve both of those items. It is scheduled to meet Tuesday to consider the supervisor's plan.

Attorney Harvey Barton, who with attorney Earl Denham represents about 200 people with a stake in the pension system, said they would not take part in any settlement being worked out either with the county or in the suits before state and federal courts.

"The hospital doesn't have enough to pay its bond debt and it hasn't shown a profit in two years, and the county wants to contribute $13 million of which $6 million is going to out-of-county attorneys," said Barton. "We're going to trust the hospital, which hasn't shown a profit, to be able to contribute $148 million over the next what 30 or 40 years? They're going to need a heck of a turnaround firm is what I'd say."

Although Guice said no attorney fees would be paid from the county contribution, Barton wondered where they would come from. The agreement calls for SRHS to set up separate accounts for money from the county and for money to be used to pay attorneys.

Supervisors voted 4-1 to make the contribution with Mike Mangum, who was serving at his final meeting, voting no. He said he didn't oppose the essence of the agreement but he wanted the turnaround team in place to advise the county before it put money into SRHS.

Barton and the dozens in the audience who pleaded "please don't do this" and "no" before the vote wanted any decision postponed until the new board, which will include members to replace Mangum and John McKay, is seated Jan. 4.

Supervisor Melton Harris said he thought it was important to vote Monday because the pension problem gets worse every day and two new board members couldn't change the outcome.

"Three board members are staying here and two are coming in," he said. "That's not necessarily going to change anything. Two board members have a lot to learn."

Randy Bosarge, one of the incoming supervisors, had asked supervisors to think of the SRHS employees and retirees before voting.

"We know the hospital was mismanaged but that's not these people's responsibility to carry that burden." he said. "They were promised a retirement. They need to be paid a retirement."

Guice said a delay could jeopardize the hiring of the turnaround firm and the appointment of new SRHS trustees.

"Nobody's going to do anything over Christmas," was Barton's answer to those concerns.

This story was originally published December 21, 2015 at 1:14 PM with the headline "Supervisors will pay for care but won't contribute to SRHS pension plan ."