Some Magnolia Regional Health Center employees in Corinth recently expressed concerns about the future of the Public Employees’ Retirement System.
Magnolia Regional Health Center CEO Ronny Humes on Tuesday released a statement, which said the hospital is financially sound but the “poor performance of the state retirement plan (PERS) continues to affect Magnolia’s published financials.”
The hospital’s statement also referenced a 2017 state auditor’s report that assessed the financial health of Mississippi’s county-owned rural hospitals.
Humes’ full statement:
“As a follow up to the Office of the State Auditor report, “Assessing the Financial Health of Mississippi’s Independent County-Owned Rural Hospitals” issued in December 2017, I would like to update the community on the financial status of Magnolia Regional after the completion of our 2017 audit.
“As we discussed in December, the poor performance of the state retirement plan (PERS) continues to affect Magnolia’s published financials. Even though we can argue the PERS performance should not reflect on our financial position, we are required to record our portion of their unfunded liabilities.
“Magnolia saw a growth in net patient revenue of approximately $2 million, and we were able to reinvest $9.6 million into facility improvements and new equipment. Our cash position remains strong, and we continue to grow the addition of new physicians to support our community. While you can be assured your hospital is sound financially, the weight of the poor PERS performance continues to negatively impact our organization. Hospital leadership is continually looking for opportunities to lessen the effect of this mandated system to ensure you have a thriving hospital well into the future.”