A $22,000 settlement over a claim that the corporation managing the county hospital "tortuously interfered" with expansion efforts was accepted by the Board of Supervisors on Tuesday.
Supervisors in May had threatened litigation against Quorum Health Services LLC (QHS) if a compromise wasn't reached.
Under Tuesday's agreement, the county released Quorum from any damage or injuries arising out of the business relationship between Neshoba County, a national firm conducting a demographic study with regard to expanding and renovating the hospital and Gould-Turner Architects.
Quorum's $22,000 payment to Neshoba County "is not to be construed as an admission of liability on the part of the party or parties hereby released by whom liability is expressly denied," the agreement said.
The agreement also prohibits Neshoba County and Quorum or any officer, director, employee or agent of either party from issuing any press release relating to the agreement or make any oral or written communication to any person or entity which disparages the other party with respect to their business relationship in regards to this particular matter.
Board of Supervisors President Obbie Riley said he could not comment on the matter under the terms of the agreement with Quorum.
Since Neshoba County is a public entity and is subject to the Mississippi Public Records Act, the agreement is, however, a public record as is the board's order accepting Quorum's $22,000 settlement.
Supervisors spent about an hour in executive session before voting unanimously to accept the settlement officer.
Supervisors charged in May that along with financial records Quorum had denied county officials access to engineering and architectural data on a proposed new or expanded hospital.
Quorum has "tortuously interfered with Neshoba County's efforts and works toward the expansion and renovation of the Neshoba County General Hospital and Nursing Home," stated one of two orders passed unanimously by the Board of Supervisors in May.
Quorum denied any knowledge of the county's concerns.
Board of Supervisors Attorney Wade White said last May that every time supervisors asked to look at the hospital's finances, QHR makes an ownership claim and refuses to provide documents.
He said Quorum claimed ownership of architectural and engineering work as well, despite the hospital paying for the work.
In another May order, the board instructed White to file the tortuous claim lawsuit unless Quorum agreed to waive the statute of limitations on its initial request for documentation.
A lawsuit was never filed.
Supervisors spent more than an hour in executive session at the May meeting discussing the matter.
White said afterwards that Quorum had interfered by, among other things, sending letters to county employees and county representatives threatening litigation.
White went on to say that Quorum refused to provide pertinent hospital data for a demographic study and needs assessment the Board of Supervisors authorized a national firm specializing in advising rural hospitals to conduct in 2008.
Representatives of the national firm, Stroudwater Capital, told supervisors that, despite having their authorization, hospital administrators had refused to turn over much of the data they requested.
Even with limited data, Stroudwater's study confirmed a 2004 university study that showed that about 70 percent of the population here seeks healthcare services outside Neshoba County.
Supervisors were upset about the $22,000 they spent on what they called an incomplete Stroudwater study and called for Quorum to repay them.
"We want to recover the county's money," White said in May. "Stroudwater is one element in this, but it's much bigger than that."
White said supervisors were committed to expanding and renovating the hospital despite Quorum's intentions.
Board President Riley said after the May meeting that taxpayer money was wasted.
"We paid Stroudwater to do a report, but QHR did not provide needed information to them to make that report useful," he said at the time. "We just wasted taxpayers' money. That money came out of Neshoba County's General Fund."
Since Neshoba County General Hospital and Nursing Home is owned by the county, Riley said financial records and other data should be made available if requested.
"We are seeking monetary compensation [from Quorum] plus making sure all that information is made available. It's for public review not just for us. The public has a right to know. It's their money. It's their hospital. People should have that right," Riley said at the time.
Hospital officials in 2004 first began demonstrating the need to improve the aging facility, saying then that the emergency room was treating more than four times as many people as it was designed to treat.
Since then and through three interim administrators, there have been several costly studies and proposals.
Previous construction proposals have ranged from a $20 million expansion of the emergency room to a new $100 million facility.
Since 1993, Quorum Health Resources Inc. has been responsible for the day-to-day management of the facility and is subordinate to the hospital's Board of Trustees.
For fiscal years ending Sept. 30, 2008 and 2007, the hospital and nursing home paid Quorum $283,096 and $274,673, respectively, for management services.
In addition, Quorum was paid $383,554 and $287,290 respectively, for key employee compensation, which consists of salaries for the chief executive officer and the chief financial officer.
The present management contract with Quorum expires in March 2010.
Members of the hospital's Board of Trustees are: Marvin Page, Kizzie Donald Moore, Jo Helen Daly, Roger Owen and Oliver Jolly.
