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In last ditch effort to stay open, Holly Springs hospital ends inpatient care

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In last ditch effort to stay open, Holly Springs hospital ends inpatient care

Alliance Healthcare System in Holly Springs is Mississippi’s first rural emergency hospital – the first in a trend some say indicates the further decline of health care access in the one of the country’s poorest and sickest states.

Hospitals were able to apply for the new federal designation mere weeks ago, when the Mississippi Department of Health rolled out its rules for “rural emergency hospitals.” The federal government finalized the program in November.

Rural emergency hospitals are a step below critical access hospitals, which must have 25 or fewer inpatient beds, provide emergency services, keep its patients for less than 96 hours and be located at least 35 miles from another hospital.

The resources at rural emergency hospitals are even fewer — they must end all inpatient care and transfer patients to larger hospitals within 24 hours of the patient coming to the emergency room.

The hospital has already begun getting rid of all its inpatient beds and discharging current patients, as reported by the South Reporter, Marshall County’s community newspaper, on Wednesday. The acute care center is currently licensed for 40 beds, though its daily census doesn’t go much higher than four or five patients a day, according to hospital CEO Dr. Kenneth Williams.

The hospital has partnered with North Mississippi Medical Center and will transfer its patients there if necessary, he said.

He also said Alliance is one of just a handful of hospitals across the country approved for the designation so far.

As of Thursday, spokespeople from the state Department of Health said Alliance’s new hospital designation hadn’t been approved by the Centers for Medicare and Medicaid Services. But according to Williams, it had been approved by both required parties, CMS and the state Health Department, on Wednesday. 

“I haven’t even had a chance to share this with my staff,” he said Thursday. “Yesterday was an exciting day for me to have that designation. I’m looking forward to the future to see how it works out.”

Rural emergency hospitals also can’t provide swing bed services, which means if a hospital operates a nursing home, that has to close. Alliance does not operate a nursing home.

Both rural emergency and critical access hospital designations are meant to ease financial stress — if a hospital qualifies as either, in exchange, they get paid more for their services. Rural emergency hospitals also get monthly payments from the federal government.

The program is aimed at preventing the closure of rural hospitals and creating a way they can increase financial viability and maintain operations. The idea is that rural hospitals at risk of closure already struggle with low patient counts and low payments for inpatient care.

But it’s meant as a last resort for hospitals that are barely surviving because of the limited amount of services a rural emergency hospital can offer.

State Health Officer Dr. Dan Edney considers it a closure when a hospital converts to an REH because of the loss of services. He tweeted in early February about the state’s first “loss” of a hospital, which is around the time Alliance applied for the designation with the Centers for Medicare and Medicaid Services and the Mississippi Department of Health. He compared rural emergency hospitals to triage units.

Williams, on the other hand, sees them as “expanded outpatient hospital systems.”

Rep. John Faulkner, a Democrat who represents Holly Springs, was not immediately available for comment Friday morning.

Williams bought the hospital two decades ago when he heard it was struggling. During its first years under Williams, he said the hospital was making money. Then in 2006, it lost almost $2 million with the arrival of Medicare Advantage plans, which are privatized versions of Medicare that often deny needed care and underpay hospitals.

Holly Springs is a certified retirement community, which means most of the hospital’s patients are on Medicare.

They’ve had good years and bad years since, but it’s been mostly downhill, especially since the pandemic began.

“I knew that our hospital couldn’t exist under the payment system it is under right now,” Williams said.

A little more than a decade ago, Alliance tried applying to become a critical access hospital. They were rejected because of the hospital’s proximity to Memphis.

Now, Williams says the federal rules are a little more relaxed, and he decided to apply at the recommendation of his partner, Quentin Whitwell, who operates hospitals in north Mississippi and serves as legal counsel for Alliance Healthcare, and the hospital’s financial team.

“With REH, the robust outpatient services the clinic brings to the community will be enhanced, along with continued 24/7 coverage, and the costly services will be reduced while receiving an annual subsidy,” Whitwell said when reached by text Thursday. “We are glad it worked out.”

Few Mississippi hospitals are making money, especially in the state’s more rural regions. The problem is multifaceted, but experts say the crisis has resulted from a combination of state leaders’ refusal to expand Medicaid, insurance companies’ low reimbursement rates and the pandemic forcing costs up in all areas, including staffing.

“The funding of health care in rural America is going down,” Edney previously told Mississippi Today in an interview. “There is no one coming to the rescue.”

Williams said many of the challenges hospitals are facing lead back to insurance payments and managed care plans, like Medicare Advantage.

He could’ve closed the hospital back in 2012, Williams said, when it first applied for critical access status, but he’s done everything he can to keep it open, including some layoffs and reorganizing their staff.

But at some point, “you cut muscle instead of fat,” Williams said.

One report from the Center for Healthcare Quality and Payment Reform puts a third of rural Mississippi hospitals at risk of closure, and half of those within a few years.

“Too many small rural hospitals are closing,” Williams said. “Big hospitals are struggling, whether or not they admit it, but you can get by if you’re doing high-end procedures.

“But just to take care of a regular patient who has congestive heart failure, with diabetic ketoacidosis, who is sick, they (insurance companies) don’t want to pay you for it.”

According to data from the CHQPR, Alliance Health has been losing money for the past few years, both overall and specifically taking care of patients.

And just in case the rural emergency hospital structure doesn’t work, Alliance is still applying for the critical access designation, too. If the new designation doesn’t stabilize the hospital, it can revert to its original status as an acute care facility or, if it is approved for the critical access hospital designation, it can convert to that, instead.

“Would I prefer to have us continue to operate the way that we were, having patients be admitted? Absolutely,” Williams said. “It is unfortunate that we had to make this move, but it is the right move based on the reality of health care and this payment system.”

According to Edney, Mississippi can likely expect more conversions to rural emergency hospitals – or, as he refers to them, “closures” – in the coming months.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

On this day in 1898

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mississippitoday.org – Jerry Mitchell – 2025-02-22 07:00:00

Feb. 22, 1898

Lavinia Baker and her five surviving children. A white mob set fire to their house and fatally shot and killed her husband, Frazier Baker, and baby girl Julia on Feb. 22, 1898. Left to right: Sarah; Lincoln, Lavinia; Wille; Cora, Rosa Credit: Wikipedia

Frazier Baker, the first Black postmaster of the small town of Lake City, South Carolina, and his baby daughter, Julia, were killed, and his wife and three other daughters were injured when a lynch mob attacked

When President William McKinley appointed Baker the previous year, local whites began to attack Baker’s abilities. Postal inspectors determined the accusations were unfounded, but that didn’t halt those determined to destroy him. 

Hundreds of whites set fire to the post office, where the Bakers lived, and reportedly fired up to 100 bullets into their home. Outraged citizens in town wrote a resolution describing the attack and 25 years of “lawlessness” and “bloody butchery” in the area. 

Crusading journalist Ida B. Wells wrote the White House about the attack, noting that the family was now in the Black hospital in Charleston “and when they recover sufficiently to be discharged, they) have no dollar with which to buy food, shelter or raiment. 

McKinley ordered an investigation that led to charges against 13 men, but no one was ever convicted. The family left South Carolina for Boston, and later that year, the first nationwide civil rights organization in the U.S., the National Afro-American Council, was formed. 

In 2019, the Lake City post office was renamed to honor Frazier Baker. 

“We, as a family, are glad that the recognition of this painful event finally happened,” his great-niece, Dr. Fostenia Baker said. “It’s long overdue.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Memorial Health System takes over Biloxi hospital, what will change?

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mississippitoday.org – Roy Howard Community Journalism Center – 2025-02-21 15:22:00

by Justin Glowacki  with contributions from Rasheed Ambrose, Javion Henry, McKenna Klamm, Matt Martin and Aidan Tarrant

BILOXI – On Feb. 1, Memorial Health System officially took over Merit Health Biloxi, solidifying its position as the dominant healthcare provider in the region. According to Fitch Ratings, Memorial now controls more than 85% of the local health care market.

This isn’t Memorial’s first hospital acquisition. In 2019, it took over Stone County Hospital and expanded services. Memorial considers that transition a success and expects similar results in Biloxi.

However, health care experts caution that when one provider dominates a market, it can lead to higher prices and fewer options for patients.

Expanding specialty care and services

Kristian Spear, Hospital Administrator at Memorial Hospital Biloxi, speaks on the hospital’s acquisition and future goals for improvement. (RHCJC News)

One of the biggest benefits of the acquisition, according to Kristian Spear, the new administrator of Memorial Hospital Biloxi, will be access to Memorial’s referral network.

By joining Memorial’s network, Biloxi patients will have access to more services, over 40 specialties and over 100 clinics.

“Everything that you can get at Gulfport, you will have access to here through the referral system,” Spear said.

One of the first improvements will be the reopening of the Radiation Oncology Clinic at Cedar Lake, which previously shut down due to “availability shortages,” though hospital administration did not expand on what that entailed.

“In the next few months, the community will see a difference,” Spear said. “We’re going to bring resources here that they haven’t had.”

Beyond specialty care, Memorial is also expanding hospital services and increasing capacity. Angela Benda, director of quality and performance improvement at Memorial Hospital Biloxi, said the hospital is focused on growth.

“We’re a 153-bed hospital, and we average a census of right now about 30 to 40 a day. It’s not that much, and so, the plan is just to grow and give more services,” Benda said. “So, we’re going to expand on the fifth floor, open up more beds, more admissions, more surgeries, more provider presence, especially around the specialties like cardiology and OB-GYN and just a few others like that.”

For patient Kenneth Pritchett, a Biloxi resident for over 30 years, those changes couldn’t come soon enough.

Keneth Pritchett, a Biloxi resident for over 30 years, speaks on the introduction of new services at Memorial Hospital Biloxi. (RHCJC News) Credit: Larrison Campbell, Mississippi Today

Pritchett, who was diagnosed with congestive heart failure, received treatment at Merit Health Biloxi. He currently sees a cardiologist in Cedar Lake, a 15-minute drive on the interstate. He says having a cardiologist in Biloxi would make a difference.

“Yes, it’d be very helpful if it was closer,” Pritchett said. “That’d be right across the track instead of going on the interstate.”

Beyond specialty services and expanded capacity, Memorial is upgrading medical equipment and renovating the hospital to improve both function and appearance. As far as a timeline for these changes, Memorial said, “We are taking time to assess the needs and will make adjustments that make sense for patient care and employee workflow as time and budget allow.”

Unanswered questions: insurance and staffing

As Memorial Health System takes over Merit Health Biloxi, two major questions remain:

  1. Will patients still be covered under the same insurance plans?
  2. Will current hospital staff keep their jobs?

Insurance Concerns

Memorial has not finalized agreements with all insurance providers and has not provided a timeline for when those agreements will be in place.

In a statement, the hospital said:

“Memorial recommends that patients contact their insurance provider to get their specific coverage questions answered. However, patients should always seek to get the care they need, and Memorial will work through the financial process with the payers and the patients afterward.”

We asked Memorial Health System how the insurance agreements were handled after it acquired Stone County Hospital. They said they had “no additional input.”

What about hospital staff?

According to Spear, Merit Health Biloxi had around 500 employees.

“A lot of the employees here have worked here for many, many years. They’re very loyal. I want to continue that, and I want them to come to me when they have any concerns, questions, and I want to work with this team together,” Spear said.

She explained that there will be a 90-day transitional period where all employees are integrated into Memorial Health System’s software.

“Employees are not going to notice much of a difference. They’re still going to come to work. They’re going to do their day-to-day job. Over the next few months, we will probably do some transitioning of their computer system. But that’s not going to be right away.”

The transition to new ownership also means Memorial will evaluate how the hospital is operated and determine if changes need to be made.

“As we get it and assess the different workflows and the different policies, there will be some changes to that over time. Just it’s going to take time to get in here and figure that out.”

During this 90-day period, Erin Rosetti, Communications Manager at Memorial Health System said, “Biloxi employees in good standing will transition to Memorial at the same pay rate and equivalent job title.”

Kent Nicaud, President and CEO of Memorial Health System, said in a statement that the hospital is committed to “supporting our staff and ensuring they are aligned with the long-term vision of our health system.”

What research says about hospital consolidations

While Memorial is promising improvements, larger trends in hospital mergers raise important questions.

Research published by the Rand Corporation, a nonprofit, nonpartisan research organization, found that research into hospital consolidations reported increased prices anywhere from 3.9% to 65%, even among nonprofit hospitals.

Source: Liu, Jodi L., Zachary M. Levinson, Annetta Zhou, Xiaoxi Zhao, PhuongGiang Nguyen, and Nabeel Qureshi, Environmental Scan on Consolidation Trends and Impacts in Health Care Markets. Santa Monica, CA: RAND Corporation, 2022.

The impact on patient care is mixed. Some studies suggest merging hospitals can streamline services and improve efficiency. Others indicate mergers reduce competition, which can drive up costs without necessarily improving care.

When asked about potential changes to the cost of care, hospital leaders declined to comment until after negations with insurance companies are finalized, but did clarify Memorial’s “prices are set.”

“We have a proven record of being able to go into institutions and transform them,” said Angie Juzang, Vice President of Marketing and Community Relations at Memorial Health System.

When Memorial acquired Stone County Hospital, it expanded the emergency room to provide 24/7 emergency room coverage and renovated the interior.

When asked whether prices increased after the Stone County acquisition, Memorial responded:

“Our presence has expanded access to health care for everyone in Stone County and the surrounding communities. We are providing quality healthcare, regardless of a patient’s ability to pay.”

The response did not directly address whether prices went up — leaving the question unanswered.

The bigger picture: Hospital consolidations on the rise

According to health care consulting firm Kaufman Hall, hospital mergers and acquisitions are returning to pre-pandemic levels and are expected to increase through 2025.

Hospitals are seeking stronger financial partnerships to help expand services and remain stable in an uncertain health care market.

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Source: Kaufman Hall M&A Review

Proponents of hospital consolidations argue mergers help hospitals operate more efficiently by:

  • Sharing resources.
  • Reducing overhead costs.
  • Negotiating better supply pricing.

However, opponents warn few competitors in a market can:

  • Reduce incentives to lower prices.
  • Slow wage increases for hospital staff.
  • Lessen the pressure to improve services.

Leemore Dafny, PhD, a professor at Harvard and former deputy director for health care and antitrust at the Federal Trade Commission’s Bureau of Economics, has studied hospital consolidations extensively.

In testimony before Congress, she warned: “When rivals merge, prices increase, and there’s scant evidence of improvements in the quality of care that patients receive. There is also a fair amount of evidence that quality of care decreases.”

Meanwhile, an American Hospital Association analysis found consolidations lead to a 3.3% reduction in annual operating expenses and a 3.7% reduction in revenue per patient.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Adopted people face barriers obtaining birth certificates. Some lawmakers point to murky opposition from judges

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mississippitoday.org – Michael Goldberg – 2025-02-21 10:00:00

When Judi Cox was 18, she began searching for her biological mother. Two weeks later she discovered her mother had already died. 

Cox, 41, was born in Gulfport. Her mother was 15 and her father didn’t know he had a child. He would discover his daughter’s existence only when, as an adult, she took an ancestry test and matched with his niece. 

It was this opaque family history, its details coming to light through a convergence of tragedy and happenstance, that led Cox to seek stronger legal protections for adopted people in Mississippi. Ensuring adopted people have access to their birth certificates has been a central pillar of her advocacy on behalf of adoptees. But legislative proposals to advance such protections have died for years, including this year.  

Cox said the failure is an example of discrimination against adopted people in Mississippi — where adoption has been championed as a reprieve for mothers forced into giving birth as a result of the state’s abortion ban. 

“A lot of people think it’s about search and reunion, and it’s not. It’s about having equal rights. I mean, everybody else has their birth certificate,” Cox said. “Why should we be denied ours?”

Mississippi lawmakers who have pushed unsuccessfully for legislation to guarantee adoptees access to their birth certificate have said, in private emails to Cox and interviews with Mississippi Today, that opposition comes from judges.

 “There are a few judges that oppose the bill from what I’ve heard,” wrote Republican Sen. Angela Hill in a 2023 email. 

Hill was recounting opposition to a bill that died during the 2023 legislative session, but a similar measure in 2025 met the same fate. In an interview this month, Hill said she believed the political opposition to the legislation could be bound up with personal interest.

“Somebody in a high place doesn’t want an adoption unsealed,” Hill said. “I don’t know who we’re protecting from somebody finding their birth parents,” Hill said. “But it leads you to believe some people have a very strong interest in keeping adoption records sealed. Unless it’s personal, I don’t understand it.”

In another 2023 email to Cox reviewed by Mississippi Today, Republican Rep. Lee Yancey wrote that some were concerned the bill “might be a deterrent to adoption if their identities were disclosed.”

The 2023 legislative session was the first time a proposal to guarantee adoptees access to their birth certificates was introduced under the state’s new legal landscape surrounding abortion.

In 2018, Mississippi enacted a law that banned most abortions after 15 weeks. The state’s only abortion clinic challenged the law, and that became the case that the U.S. Supreme Court used in 2022 to overturn Roe v. Wade, its landmark 1973 ruling that established a nationwide right to abortion.

Roe v. Wade had rested in part on a woman’s right to privacy, a legal framework Mississippi’s Solicitor General successfully undermined in Dobbs v. Jackson Women’s Health Organization. Before that ruling, anti-abortion advocates had feared allowing adoptees to obtain their birth certificates could push women toward abortion rather than adoption.

Abortion would look like a better option for parents who feared future contact or disclosure of their identities, the argument went. With legal access to abortion a thing of the past in Mississippi, Cox said she sees a contradiction.

“Mississippi does not recognize privacy in that matter, as far as abortions and all that. So if you don’t acknowledge it in an abortion setting, how can you do it in an adoption setting?” Cox said. “You can’t pick and choose whether you’re going to protect my privacy.”

Opponents to legislation easing access to birth certificates for adoptees have also argued that such proposals would unfairly override previous affidavits filed by birth parents requesting privacy.

The 2025 bill, proposed by Republican Rep. Billy Calvert, would direct the state Bureau of Vital Records to issue adoptees aged 21 and older a copy of their original birth certificate.

The bill would also have required the Bureau to prepare a form parents could use to indicate their preferences regarding contact from an adoptee. That provision, along with existing laws that guard against stalking, would give adoptees access to their birth certificate while protecting parents who don’t wish to be contacted, Cox said.

In 2021, Cox tried to get a copy of her birth certificate. She asked Lauderdale County Chancery Judge Charlie Smith, who is now retired, to unseal her adoption records. The Judge refused because Cox had already learned the identity of her biological parents, emails show.

“With the information that you already have, Judge Smith sees no reason to grant the request to open the sealed adoption records at this time,” wrote Tawanna Wright, administrator for the 12th District Chancery Court in Meridian. “If you would like to formally file a motion and request a hearing, you are certainly welcome to do so.”

In her case and others, judges often rely on a subjective definition of what constitutes a “good cause” for unsealing records, Cox said. Going through the current legal process for unsealing records can be costly, and adoptees can’t always control when and how they learn the identity of their biological parents, Cox added.

After Cox’s biological mother died, her biological uncle was going through her things and came across the phone number for Cox’s adoptive parents. He called them.

“My adoptive mom then called to tell me the news — just hours after learning I was expecting my first child,” Cox said.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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