So here I am today folks periodically reading bond indentures, a very old SHRS audit report from back in the days when things were still groovy financially as well as Jackson County’s audits. First off I am not so pleased to report I have only found about half of SHRS’ debt on EMMA and there is a message there about Jackson County not being current on their 2014 submissions. The other half of the $100 million dollars in debt is as of this point still a mystery to me.
My point is not to tantalize with the fact I have been doing copious amounts of due diligence on this subject but to make a point to the fairly large contingent of the finance and accounting community that reads this project. Neither Jackson nor Forrest Counties include their component units in with the primary government for financial reporting purposes and both get adverse opinions on the discretely presented component units presented in the annual audits along with unqualified opinions on the primary governments. To the extent it is clear the county owned hospitals are magnitudes larger financial critters than their primary governments (which omit them from their consolidated financials) and Jackson County taxpayers are potentially on the hook for a financial guarantee of over $100 million dollars related to the omitted financials, how in the heck can the primary government not be disclaimed due to the sheer materiality of the omission by failing to consolidate the Primary government and component units. SHRS had audits performed that would allow for consolidation, it appears the case here is that Jackson County simply refused to consolidate its financials to include the Hospital.
My point is had Jackson County properly presented its financial statements and consolidated County Government and its component unit at the Hospital, management at the Hospital would not have been able to conceal their financial problems for as long as they did.
As for Jackson County’s financial statements, file them under materially misleading as the financial guarantee of the bonds is presented, just not any information that would allow the end user to figure the risk of the contingent financial guarantee of the SHRS bonds from turning into a 5 mil property tax assessment borne by the taxpayer to pay for bad decisions that were made in secret.
I’ll have more a bit later.
I managed to find all of the SHRS debt and even a 2011 audit report which clearly identifies it as a component unit of Jackson County. The mystery of why it was never consolidated with the county’s financials deepens.
When this story started breaking I took a look at EMMA. I seem to remember a lot of late filings and missing disclosure.
Imagine my surprise at the existence of over $100 million of Jackson County taxpayer on the hook. I consider myself a fairly diligent financial researcher, so this is a puzzle as to how it was accomplished and i such a fashion that I missed it when reviewing the financials for icebergs.
I wonder what the Supervisor’s minutes say about these transactions?
I’ve managed to suss out two of the three loans with one having no documents. Nabbing the audit on EMMA broke the log jam.
Certainly the gang in SRHS finance has discussed filing bankruptcy. There may be a way to salvage things but the impacts of the Affordable Care Act have hurt smaller operators. And there is lots of vested interest in maintaining the status quo which is why the situation is now so dire.
I personally think the retirees should be the last people to get screwed on this but I know how the financial aspects work too well.
There may be some internal smoking gun type documents dealing with the bad debt allowance. I’m personally ready to cover an accounting fraud for the first time, I can check it off the ol’ blog bucket list alongside bribery, money laundering and simple assault.
Louisiana, by state law (Act 463), mandated compliance with the SEC’s MCDC Initiative. Has Mississippi done anything similar?
Kersey, Act 463 of which year???
Empire:
La.Act 463 was passed and took effect this year however transparency of indebtedness does not reveal all the political deadwood jobs appointed by the rich and famous of Jefferson Parish and Mississippi as we learned also from the hospital deadhead appointment of DA Reed’s brother at Satanic Tammany Parish Hospital.
Another auditing Act should be passed using the word “shall” in commanding disclosure of all familial relationships ( all family connections including in-laws employed at hospital) and political appointments by all employees making over $25,000/yr at all public hospitals.The Act should also command all vendors/contractors to reveal the same familial relationships to any hospital official,board member or political official overseeing said hospital contracts.
If the WJMC employees had to disclose these relationships it would have explained away why westbank councilmen were aligned together so tightly in block voting for Children’s Hospital ‘s proposal despite HCA offering a much greater financial package for both hospitals.
It was also these political jobs and appointment power held by council people of the east and west banks of Jefferson which caused the Jefferson Parish Council to refuse to follow the wisdom and suggestion of a MILLION DOLLAR 1999 financial study to consolidate the two hospitals into one purchasing and managing public entity.
Not a good time to be a Supervisor over in Jackson County. The PR downside to what is happening here is miles deep. When the taxpayers are told they will be responsible for the mismanagement of money at the SRHS on their next property tax bill all hell will break loose. Might not be as bad as Ferguson,Mo. but people will be striking out at that board in many ways. They deserve all they get for not providing any oversight in this matter.Now after the fact they want to through a bunch of money at advisors and consultants. At least when odd man out Frank Leach was on the JCBOS they had someone who could read and understand a financial statement.This sort of reminds me of the CMR’s oversight of the DMR during Bogus Bill’s tenure.
BB the party at the DMR is not over – it is just getting ready to pick up where it left off (if it ever left off). Puhla$$-o has his cronies in place now that were ordered by Fata$$ Barbour and the grifting continues. All you have to do is look at the time that Billy Hewes’ brother-in-law, Joe Zeegler got to see that the Republicans (who by the way, are supposed to be conservatives) are sitting back watching the money roll in taken off of the backs of the Taxpayers. This is an absolute disgrace.
I keep thinking that Washington will step in and do something about what is going on down here. Maybe the poor peoples’ retirement at the SRH will be the staw that broke the camel’s back. Something has to give. These rich snobs don’t want to work. Instead, they want to steal our money and treat the average Joe like dirt. I am sorry….I used to vote the republican ticket. But those days are over because it is no longer the conservative party. It is the party of CONprofits now and it is surely a sad day for Mississippi.
‘My life has just changed completely’: SRHS employee scraps plans to retire after meeting
“I understand the retirement is gone,” she said. “God is in charge of my retirement. He will take care of me.”
Horn left the employee meeting a little early Thursday. While she was talking to the media, she was being videotaped by SRHS employee. The Sun Herald asked if Horn’s job would be in affected as a result of her talking.”
Talk about tone deaf.
Richard Lucas, the system’s vice president of communications, said they simply want to know what is being said. He said he knows Horn well and even goes to church with her. He said her job is not at risk as a result of the interview.
The followup I might have asked: “How many jobs at SRHS are at risk due to to the apparent clusterfuckery?”
Not that I’d expect an answer.
Stay tuned.
Looks like the hospital problems in Jackson County are heating up. I wonder if they will now stop objecting to the new planned hospital here in Biloxi at Cedar Lake since they don’t have any money to fight it and will be spending a whole lot on legal fees defending themselves? Looks like the current SR managers are blaming the past SR managers even though some are the same people.Two Jackson County supervisors were interviewed on the Dave and Doug Show-WLOX this weekend and denied any knowledge of a problem until recently. Doug was very strong in his questioning and those being interviewed were nervous. Just makes you wonder does the buck stop anywhere these days?
“Ignorance isn’t an excuse but in this case it is a reason.”
All of Mississippi should study up on what’s happening in Jackson County at Singing River Hospital
by Frank Corder
“As a cautionary tale, all of Mississippi should pay close attention to what is transpiring with the Singing River Health System in Jackson County.”
When asked how this matter wasn’t caught sooner, Jackson County Supervisor John McKay recently said in an interview, “Ignorance isn’t an excuse but in this case it is a reason.”
“…all of Mississippi should be paying attention to what is happening at Singing River Hospital System……”
Maybe someone needs to sound the alarm in Jefferson Parish where EJH is in financial straights. Are the longtime employees there and pensioners in danger of losing their pensions?
If you know anyone workiing/pensioners at EJH maybe you should encourage them to call their Councilperson and ask some hard tough questions now.
After Chris Roberts and other westbank councilmen sabotaged EJH’s desire for HCA’s proposal the Honorable Norman Newell and others are presently trying to get HCA back to the negotiation table.
If EJH goes Chapter 9, citizen taxpayers are left to pay the debt and employees with pensioners lose their pension fund Chris Roberts and his gang better jump on Robert’s toy parade choo- choo train and haul ass cause they will BE WANTED by many.
HCA is talking with East Jefferson again.
I’m not much on taking away the citizens right to vote and the lease proposal process was turned into a three ring circus by the Parish Council but on this issue the pols in Jefferson Parish are light years ahead of the game compared to the Sups in Jackson County.
The marketplace headwinds faced by the two public Jefferson Parish hospitals are not unique to them or Louisiana. Giving credit where it is due, the teams at WJMC and EJGH got out in front of the problem unlike Jackson County where the gang tried covering it all up.
Very interesting reading in the email linked at the Sun Herald story Email indicates Jackson County supervisors knew SRHS plan ‘terminated’
#2 Page 2: The bondholders are calling the shots?
Being out of compliance with the covenants puts the bondholders in charge. Waivers usually cost something – either in terms of money or additional restrictions.
Seems to me all the financial engineering was directed at fixing the bond covenant violations, not the larger problem that ailed the hospital.