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By Pat Brown editor of the Magee Courier
Despite the odds, Magee General Hospital has emerged from Chapter 11 bankruptcy in only two years.
The news came last week as the courts approved a restructure plan that should allow for solvency and continued operations.
The hospital’s survival, however, came at a significant cost as MGH’s way of doing business drastically changed with new management practices of the board and a new administrator.
The administrator, Gregg Gibbes, CEO of Magee General, said, “We are pleased to be finished with the bankruptcy. Moving forward, we will be proactive to the changes in rural healthcare so Magee General can thrive instead of just survive.” Gibbes equated the hospital’s bankruptcy to the sinking of a ship.
In announcing the hospital’s release from bankruptcy, Gibbes did not take credit for the success, laying that credit instead on the board and the staff of the hospital for their dedication during the bankruptcy case which started in 2018.
He said people don’t realize how uncommon it is to be able to save a rural hospital in this environment. The fact is that hospitals are closing across the nation as well as the State of Mississippi.
The situation was worsened by the Covid-19 pandemic. Areas where rural hospitals could make money, such as elective procedures, therapy services and out-patient services, were discontinued and revenue disappeared as the government issued “Stay at Home” orders. “When this began, we appointed a new Board of Directors who worked to develop an innovative restructuring plan,” said Benny Hubbard, chairman of the board for MGH. “Part of that plan included a collaboration with Covington County Hospital for shared administrative services, which made the difference in bringing about change quickly.” Gibbes said, “With the odds stacked against rural hospitals, some might classify Magee General’s turn-around as a ‘miracle.’ Closer inspection, however, reveals a strategy made up of shared services, unconventional choices in leadership, innovative department directors and a potential roadmap for struggling hospital nationwide. Magee General even opened a new Emergency Department during their time in bankruptcy.”
“The community sees the changes we’ve made and we have gotten lots of positive feedback,” said Hubbard. “I can’t wait to see how long we are able to use this momentum to move forward and do even more new and exciting things.”
by Pat Brown
MageeNews.com is an online news site covering Simpson and surrounding counties as well as the State of Mississippi
