The Oktibbeha County Circuit Clerk’s office is vetting more than 2,000 signatures from local residents seeking a referendum on a potential sale of OCH Regional Medical Center.
Hospital supporter and petition organizer Frank Davis submitted the signatures to the clerk’s office Monday and said he would continue to deliver petitions as they come in this week.
Deputy Elections Clerk Cheryl Elmore confirmed she was processing those documents Wednesday but said a timetable for the project’s completion is not yet known.
If the clerk’s office deems at least 1,500 signatures came from qualified county electors, a potential sale or lease of the hospital will be put to a countywide vote later this year.
Officials previously suggested the issue could be added to November’s special election for chancery clerk, but an exact date has not yet been determined.
“I’m confident we’ll hit 1,500,” Davis said. “We, the people of Oktibbeha County, are the ones that own OCH, not just three (supervisors), so it’s up to us (to decide whether or not to sell the hospital). The people will decide, and there’s a big group that wants to save our hospital.”
Questioning the petition
Davis’ pro-OCH petition effort began last year after supervisors tasked Stroudwater and Associates with reviewing the hospital’s financial and market positions — the first task required by state statute before a public body can move forward with exploring a transaction.
That effort was rebooted at the end of 2016 after organizers adjusted the petition’s language to highlight the specific law allowing for a referendum on such a transaction.
A District 2 Supervisor Orlando Trainer-requested opinion from Mississippi Attorney General Jim Hood’s office came in February and stated such a petition was invalid until residents actually had a transactional process to oppose.
The letter, penned by Special Assistant Attorney General Phil Carter, stated the office is “of the opinion that, as a prerequisite to the filing of a petition seeking a referendum” on a transaction, state law requires supervisors “adopt a resolution describing its intention to sell or lease, with the option to sell the hospital, and publish the resolution in accordance with” statute.
State law allowing qualified electors to petition the board was inapplicable to the situation in February, the letter continued, because statute that outlines the procedure “must be followed in order for a petition … to be valid.”
Trainer again questioned the validity of Davis’ petition drive Wednesday, as most of the signatures were collected before the county began advertising its request for proposals for the hospital Monday.
“In my opinion, that means they’re invalid. Those signatures should have been gathered from the time of the RFP to the 60 days when (offers are) due,” Trainer said. “I think it boils down to a judgment call. That’s my opinion, though, and the board could make a majority move in spite of it (to hold an election).”
Request for proposals
A majority of supervisors — District 4’s Bricklee Miller, District 5’s Joe Williams and Trainer — approved the RFP’s issuance May 1.
The document, which sets a deadline for bids on July 7, outlines the process in which bidders can submit offers for OCH, sets minimum requirements for suitors and asks candidates to address a number of issues moving forward, including maintaining and growing medical services, satisfying debt, plans for long-term capital improvements, commitments to community involvement and the security of current employees’ jobs.
Stroudwater’s original report suggested supervisors explore transaction possibilities while the hospital continues to improve its sustainability in case a sale or lease option isn’t available and floated a potential $20 million to $60 million price tag for OCH.
It also alleged an annual $3 million to $4 million gap exists between operating results and needed levels of performance before strategic capital investments are considered.
OCH Chief Executive Officer Richard Hilton refuted those claims, saying Stroudwater’s report was based on misleading information that inflated losses, diminished revenues and did not adhere to generally accepted accounting practices, and only a portion of the fiscal year’s data was available for the study, which meant the team used estimates for its calculations.
A recently released audit of the hospital’s previous fiscal year reported a $416,064 loss between OCH’s operating revenues ($71.75 million) and expenses ($72.17 million). The report adjusted the loss to a $190,844 decrease in the hospital’s overall position after factoring in nonoperational revenues and other factors.
Hilton said the hospital remains on a strong financial footing despite the loss, as recent trends show financial gains in the past years.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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