PASCAGOULA, Miss. (AP) - An audit shows Singing River Health System made a profit in 2015 after losing more than $30 million for each of the previous two years.
The profit is nearly $690,000, according to an audit done by Dixon Hughes Goodman, a CPA firm based in Birmingham, Alabama.
The system includes Singing River Hospital in Pascagoula and Ocean Springs Hospital.
Kevin Holland, CEO of the health system, said in a news release Friday that Singing River has “stopped the financial bleeding.”
“By exceeding our budgeted forecasts for fiscal year 2015, and budgeting another profitable year of operations for 2016, we are positioning our organization to continue providing the outstanding quality and service our community expects,” Holland said.
The audit shows the system laid off 124 people and cut salaries and benefits by $30 million since 2014. It saved money by closing clinics and improving purchasing procedures. It also froze its pension system.
The audit says without cuts, the system “certainly would have been bankrupt by this point.”
The health system is being sued over its financially troubled pension plan. Holland said if a recent agreement is approved by the courts, the health system will put about $149 million into the pension fund over the next 35 years.
The audit also says the health system has not received financial support from Jackson County for the past 26 years, although its bonds are guaranteed by the county. In December, county supervisors agreed to pay $13.6 million to the health system for indigent care and to prevent bond default. The audit was finished before that agreement was reached.
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