Mississippi Today
Powerful lawmaker helped steer millions in state dollars for his neighborhood, golf course
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House Ways and Means Chairman Trey Lamar has helped steer more than $7 million in state money to improve the affluent country club neighborhood and private golf course area where he lives in north Mississippi.
In the process, he also purchased more property for himself around the projects.
The state-funded projects included $2.5 million in upgrades to the county road through his neighborhood and another $2.4 million project on and around the golf course. The stated reasoning for the golf course project is that the road project made it flood — a contention that the county engineer and road project contractor disputed in interviews with Mississippi Today.
The work included building a traffic roundabout on Country Club Road — an unusual feature for a rural-suburban street — and 10 speed humps in a 1.6-mile stretch. It also included widening the road so golf carts can more easily travel, according to the county engineer. The work also included building a new lake and concrete golf cart paths and bridges on the private golf course.
Lamar also helped steer another $200,000 in state money for the nearby city of Senatobia to buy the small water system that serves the Back Acres Country Club neighborhood in Tate County. He then helped steer another $2 million from the state to improve the system, which serves about 200 houses.
Lamar purchased a 4.5-acre piece of property where the roundabout was to be built, and he bought a strip of land bordering his backyard from the water system owner after the city bought the system.
Lamar, as House Ways and Means Committee chairman and former vice chairman, holds great sway over the state’s $7 billion budget. He’s also become the House’s de facto arbiter of “Christmas tree” bills. These are measures full of hundreds of millions of dollars worth of legislators’ pet projects for their districts. As a result, Tate County, Senatobia and his neighborhood have benefited greatly, receiving tens of millions of state dollars — dwarfing spending in similar rural areas across the state.
Lamar in an interview with Mississippi Today defended the spending on his neighborhood. He said the road project was badly needed for safety for a “very dangerous road.” He said the road project then caused flooding on the golf course and surrounding yards and the county was responsible for fixing it.
Lamar said the small water system serving the neighborhood was in terrible shape and the source of many complaints. He noted the state Public Service Commission signed off on Senatobia taking over service.
He said his purchase of property around the state-funded projects was incidental and “like any other sale or purchase … between two private entities.” He insinuated his wife handled the transaction for the roundabout property, although state records indicate he did.
Lamar cut a second interview with Mississippi Today short, saying he would not answer further questions. But he sent a written statement saying that, “After helping with thousands of projects across the state, this result is inevitable” — that he or his family would own property “in the vicinity of a public infrastructure project.”
He refused to answer any questions about his helping secure an additional $400,000 in state money to improve a quiet, already well-paved cul-de-sac in Northeast Jackson where he also owns a home.
“Any potential innuendo of wrongdoing is baseless and only diverts time and effort away from the real progress that we are making,” Lamar said in the written statement.
Country Club Work
Here is what county officials asked contractors to do on a project to upgrade Country Club Road in Tate County, according to the final plans of completed work submitted by the county engineer:
- Widened and overlaid roughly 2 miles of Country Club Road.
- Constructed a roundabout along the road.
- Removed and replaced roughly 1,600 square yards of concrete driveways.
After Tate County officials completed the first project to upgrade Country Club Road, they spent roughly $2 million more to improve drainage and flood control on the Back Acres Country Club and homes in the Back Acres subdivision.
According to revised bidding documents that outlined the scope of work for the project, here is some of the work contractors were expected to complete:
- Clear and grub 22 acres of land.
- Remove 1,560 square yards of asphalt.
- Replace roughly 270 square yards of concrete driveway.
- Remove and replace 6 golf cart bridges.
- Use 9 tons of commercial fertilizer.
- Use 12 acres of seeding.
- Use 48 tons of vegetative material for mulch.
- Use 18,000 square yards of solid bermuda sodding.
- Create 3 retention structures and 1 detention structure.
But there has been debate and questions from local residents about whether the Country Club Road project completed early last year was really needed or whether the project was overkill. They’ve also questioned the work on and around the private golf course and whether the road project really exacerbated country club flooding.
Locals created a Facebook page called “TateCounty Watchdogs,” with its posts and comments centered on the state-funded county work at the country club.
The watchdog group has questioned why, if the road project caused flooding on the golf course and surrounds, taxpayers funded the more than $2 million fix instead of the county going after surety with the contractor or engineer to cover it.
Numerous current and past Tate County supervisors declined to answer such questions or did not respond to calls requesting interviews. Others said they know very little about the country club projects.
There was a common theme among many of the dozens of residents and county and state officials including lawmakers Mississippi Today interviewed or attempted to interview: They cited fear of the powerful lawmaker Lamar in declining to comment on the record.
For fellow lawmakers, Lamar holds the purse strings in the House for projects in their districts. For locals, Lamar’s family is a prominent one. His family law firm serves as legal counsel for Tate County, including the county board of supervisors that approved the projects in question. Lamar’s father served as county attorney before the county contracted the work with the firm. Lamar’s mother is a former state Supreme Court justice and Institutions of Higher Learning college board member.
‘Mother Nature caused the flooding’
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Tate County Engineer Kevin McLeod, whose firm designed the Country Club Road and golf course projects, said the road “was mainly a safety and maintenance project.”
“Safety in that speed bumps were added, it was repaved and we added a 4- or 5-foot paved shoulder on one side so golf carts could travel safely,” McLeod said. “At public meetings, people were saying golf carts were using the road but it wasn’t wide enough for them to travel safely.”
McLeod said that despite “some residents who think that’s the case,” the road project did not cause flooding.
“The road project did not cause flooding,” McLeod said. “Mother nature caused the flooding.” He said that as the project was nearing completion, the area had two massive rains, “where even the best areas would flood.” He said residents mistook the historic deluges as the project causing more flooding.
“Soon after that we got phone calls — not many, but a few — from people who said it never did this until the road project started,” McLeod said. He said a retention pond on the front nine holes of the golf course had a bad standpipe. He said two main ditches through the country club, one through the front nine holes and one through the back nine, “had not been maintained in years.”
Bram Billingsley, owner of Ste-Bil Grading that did the Country Club Road project, said he built the road as designed and, “I find it hard to believe that what we did caused all this drainage work on the golf course.”
“All I know is we did the work as designed, or the county wouldn’t have paid us,” Billingsley said. “Now we’re being blamed … If they think it’s the fault of the contractor, then yes, the county should have done something. We’re bonded 100% on performance and payment. If we were outside our lines, then file a claim on our bond. That would be 1-2-3, just like a blank check. But they didn’t do that.”
According to minutes of the Tate County Board of Supervisors, the county received two letters claiming the road project was causing flooding, one from a homeowner and one from the Back Acres Country Club. The letters had identical wording and called for the county to fix the flooding.
But the county did not file a claim against the contractor for the road work. Instead, Lamar and the Legislature stepped in again, with an additional $2.4 million in state dollars for work to fix drainage on and around the golf course.
County Engineer McLeod said he wrote up an estimate for the drainage work, “the county sent it in, it got put on a list and they were lucky enough to get some funding for it.”
Lamar and McLeod said the county received easements for all the work it did at the country club and in neighbors’ yards. McLeod said all of the curbed concrete golf cart paths the county built “were put in to raise them up so they could act as a levy to slow the water down behind them,” not for ease of golfers getting around.
A representative of the contractor that did the golf course work did not return calls for an interview.
Tate County District Attorney Jay Hale, a former Back Acres Country Club board member who still helps the club board with legal issues, said his sister was the homeowner who wrote the complaint letter because her property had severe flooding from the road project.
“We put the county on notice that they had caused a problem,” Hale said. “… My sister and brother-in-law were getting ready to sue the county. There were numerous complaints from residents. They flooded the country club with that project. It’s moving the same amount of water, but much faster. My sister had videos of water flying down her property. At one point her pool was about to go underwater.”
Hale said Country Club Road was in bad shape and he believes the initial project was needed, though he added, “I guess that’s probably up for debate.” But he said the county was responsible for fixing the drainage afterward.
“None of the country club members wanted (the drainage project),” Hale said. “They understood it was needed for drainage, but it shut down the golf course, at least nine holes at a time, for a year.”
Jason Carter, current Back Acres Country Club board president, said, “This wasn’t a beautification project.”
Hale and Carter said the concrete golf cart paths the county built with state funds — about $200,000 worth — were to replace paths the county destroyed with its drainage work. They said the club liked the way the new paths looked, so it shelled out about $30,000 of its own money to rebuild others on the course to match. They said residents questioning the work could have confused the club’s work with the taxpayer-funded work.
Hale said some of the questions and complaints about the work could be simply because it was done for a country club neighborhood.
“There are about 300 members, out of 28,000 people in the county,” Hale said. “I guess people don’t like seeing money put into where it went.”
Watchdogs take note of ‘Trey Way’
Lamar’s scoring lots of tax dollars for his neighborhood and district has in recent years drawn the ire of some fellow lawmakers. But it has also raised questions and attracted scrutiny from his own constituents.
The TateCounty Watchdogs Facebook page was formed in June, about the same time Mississippi Today started receiving messages and questions about the work.
Some locals have nicknamed Country Club Road “Trey Way.” They’ve questioned the government doing work in and around Back Acres Country Club and whether work on the golf course was more about golfing than drainage.
“This project is spending just over $2.1 million dollars on the Back Acres Country Club private golf course,” the initial Watchdog post said. “Over $200,000 is being spent on golf cart paths per itemized listing.”
A later post said: “The next step is to inspect the premise under which all this Tate County money was spent on a private golf course, rather than the abundance of the public property issues we have … Who is the responsible contractor, and why was his bond against surety company not pursued?”
Another post said: “It is common knowledge the back 9 flooded before the road project. If the damage was caused by the county road project, why can’t the county explain which contracted party is responsible?” One local commenter on the page said, “Country Club road was the best road in the county before they did the work.”
But the administrator of the TateCounty Watchdogs page, contacted through private message, declined to identify themselves or speak about the issues on the record. Numerous other residents contacted shared that trepidation.
Residents early last year did publicly voice complaints and sign a petition to the county about the large number of large speed humps on the improved Country Club Road – 10 in less than two miles. They said the speed humps, roundabout and two three-way stops were ridiculous and could impede first responders trying to traverse the road. Lamar addressed residents at a hearing about the speed humps and said they were needed for traffic safety. But after the complaints, the county came back and milled off half of the speed humps.
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Residents have had trouble getting answers from county leaders. Several present and past county leaders contacted by Mississippi Today brushed off questions, claimed they knew little about the projects or didn’t return calls and messages. About a month after Mississippi Today submitted written questions, the county supplied some written statements but did not answer some main questions.
Tate County Supervisor Leigh Ann Darby represents the area. She notes she took office in January and “this project predates me.”
Darby said she knows little about the projects, but is aware of the questions being asked about them, including why the county didn’t go after contractor surety if the road caused flooding.
“I would say, yes, a lot of money was funneled into that project for a public road, then was rolled over into the golf course,” Darby said. “I know that question has been posed numerous times. I have not heard a definitive answer to that.”
Darby said she joined the Back Acres Country Club long ago but has not been an active member for years.
“I was not involved in any aspect of obtaining that money,” Darby said. “I don’t play golf. My family doesn’t, and I don’t even travel that road often … But I am for complete transparency, and I am raising questions, too … I saw the public records request you sent up here … I am for complete transparency and I don’t want Tate County hiding anything.”
Current Tate County Board President Tony Sandridge was a supervisor when the projects were approved, but he said he also knows very little about them.
“If it’s not in District 3, I’m really not sure about it,” he said.
Supervisor George Stepp said he is new to the board and knows little about it other than, “It was all state funded, no money from the county – I can tell you this … I try to stay away from some of this. I don’t get too involved.”
About a month after receiving written questions from Mississippi Today, the Tate County Board of Supervisors responded in writing with a letter signed by Sandridge, but the responses left much unanswered.
“Current elected officials and staff do not have the knowledge to answer questions surrounding the history of this project other than what is recorded on the county’s official minutes,” the written response said. “… Tate County, to our knowledge, has never made a finding as to the cause of the flooding. Whether the flooding existed prior to the road project, worsened after the road project, or was caused by extreme weather events that are the acts of God, the Tate County Board of Supervisors realized a problem existed …”
The statement said the two letters received about flooding “are the only two formal complaints ‘as a result of the project’ made to the county and spread on the minutes” but one other nearby neighbor in 2022 complained to the board about drainage.
The statement did not answer why, if the project caused or exacerbated flooding, the county did not hold the contractor or engineer accountable. Instead, Sandridge wrote, the county was doing work “necessary to promote the health, comfort and convenience of the inhabitants of Tate County.”
The county’s response noted that when the initial, partial state funding for the project was secured, the county was under the “beat system” where each supervisor manages roads in his or her district, and that former Supervisor Cam Walker who retired in 2019 was in charge of that district.
Walker, whom Mississippi Today had been unable to reach for comment, provided a brief written statement as part of the county’s response. He said the road was dangerous and he had been working to improve it since at least 2006, but was unable to secure funding. He said he attended at least two public hearings when he was in office where citizens demanded the road be “improved and made safer.”
‘That’s a private transaction’
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Lamar built his home on Country Club Road on the outskirts of Senatobia in 2015.
In 2018, as the Legislature struggled to find money in austere times for badly needed infrastructure improvements statewide, Lamar helped secure $1 million for overhauling Country Club Road. The money sat in the county’s bank account for a while. In 2020, Lamar helped steer another $1.5 million to the road.
In 2018, Lamar defended funding for the project after it was temporarily axed from the legislative spending bill and a reporter asked about it being the road on which he lives. He said it’s a main thoroughfare that badly needed safety improvements and at least two people had been killed on it. Records show there were two traffic deaths on Country Club Road – one in 2004 and one in 2016.
Lamar said at the time, “I don’t apologize for working to help my people. That is my job.”
In 2022, Lamar helped create the Tate County Erosion Control and Repair Fund with state legislation. To date, the country club golf course area work is the only project that has been completed through the fund.
Lamar said there is nothing untoward about him buying property related to the Country Club Road project or the city takeover of the neighborhood water system after helping fund them with state dollars.
JT Delta Company LLC bought the 4.5 acres on the north of what was to become the new roundabout on the road after the state funding was approved. Lamar said, “My wife owns that LLC … and it’s a real estate company.” But state records show Trey Lamar as the only officer and registered agent of the LLC, and it appears he handled the paperwork for the purchase.
“That’s a private transaction,” Lamar said. “It had nothing to do with the county, so it’s like any other sale or purchase of real estate between two private entities … That project was already decided on when that purchase was made. I don’t design roundabouts or design intersections. So that’s something that would have been done by the county and the county’s engineer.”
Lamar said that after the city of Senatobia bought the small New Image water system serving the country club neighborhood, it hooked the area up to the city system and didn’t need the small strip of property the small system owned adjacent to Lamar’s backyard.
“It’s, I don’t know, a tenth of an acre,” Lamar said. “So when the city purchased that system, they abandoned that well, and I think they sold the equipment that was there … That system was owned by one gentleman … and left him owning a tenth of an acre or whatever … I purchased that in a private transaction … that had nothing to do with the water system.
“I’m not on city water,” Lamar said. “I wasn’t on the New Image system … I’m on a private well.”
Lamar said he made the land purchases after the state funding and projects were approved.
State law prohibits public officials from using their official positions to obtain, or attempt to obtain, financial benefit for themselves.
State Ethics Commission Director Tom Hood, speaking generally and not about Lamar or the country club projects and land deals, said a public official helping secure improvements to his neighborhood or street would not necessarily pose a legal issue. He noted a past Ethics Commission ruling that said a city could extend its water system to land owned by a mayor.
“If you’ve got to speculate about something affecting property value, then that’s not enough,” Hood said. “If there’s no pecuniary benefit, then there’s no violation. You have to prove monetary benefit to somebody caused by the government action … Even going from a gravel road to a paved road, if the only benefit is you don’t have to wash your car as much — those are difficult questions.”
Hood said a public official purchasing property around a public project also wouldn’t automatically pose an ethical question.
“That could be a problem if they were using nonpublic information for the purchase,” Hood said. “But if the information was already public, that statute wouldn’t apply … The short answer on these situations is: it depends.”
Meanwhile, TateCounty Watchdogs, which recently had more than 2,200 followers, posted: “In our opinion, even if it was all ‘State money,’ that is no justification to use public monies in this way. Every working Tate Countian pays income tax in to the state of Mississippi. The state then allocates some of that money back out to the counties for roads, infrastructure and whatnot. If our County is placing these dollars into private properties, it will require that much more in County taxes for Tate County to meet her obligations.
“Stay tuned to avoid being taken advantage of as you live your life in and around Tate County,” the post concluded.
READ MORE: Click here to return to the series summary
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
If Tate Reeves calls a tax cut special session, Senate has the option to do nothing
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An illness is spreading through the Mississippi Capitol: special session fever.
Speculation is rampant that Gov. Tate Reeves will call a special session if the Senate does not acquiesce to his and the House leadership’s wishes to eliminate the state personal income tax.
Reeves and House leaders are fond of claiming that the about 30% of general fund revenue lost by eliminating the income tax can be offset by growth in other state tax revenue.
House leaders can produce fancy charts showing that the average annual 3% growth rate in state revenue collections can more than offset the revenue lost from a phase out of the income tax.
What is lost in the fancy charts is that the historical 3% growth rate in state revenue includes growth in the personal income tax, which is the second largest source of state revenue. Any growth rate will entail much less revenue if it does not include a 3% growth in the income tax, which would be eliminated if the governor and House leaders have their way. This is important because historically speaking, as state revenue grows so does the cost of providing services, from pay to state employees, to health care costs, to transportation costs, to utility costs and so on.
This does not even include the fact that historically speaking, many state entities providing services have been underfunded by the Legislature, ranging from education to health care, to law enforcement, to transportation. Again, the list goes on and on.
And don’t forget a looming $25 billion shortfall in the state’s Public Employee Retirement System that could create chaos at some point.
But should the Senate not agree to the elimination of the income tax and Reeves calls a special session, there will be tremendous pressure on the Senate leadership, particularly Lt. Gov. Delbert Hosemann, the chamber’s presiding officer.
Generally speaking, a special session will provide more advantages for the eliminate-the-income-tax crowd.
First off, it will be two against one. When the governor and one chamber of the Legislature are on the same page, it is often more difficult for the other chamber to prevail.
The Mississippi Constitution gives the governor sole authority to call a special session and set an agenda. But the Legislature does have discretion in how that agenda is carried out.
And the Legislature always has the option to do nothing during the special session. Simply adjourn and go home is an option.
But the state constitution also says if one chamber is in session, the other house cannot remain out of session for more than three days.
In other words, theoretically, the House and governor working together could keep the Senate in session all year.
In theory, senators could say they are not going to yield to the governor’s wishes and adjourn the special session. But if the House remained in session, the Senate would have to come back in three days. The Senate could then adjourn again, but be forced to come back if the House stubbornly remained in session.
The process could continue all year.
But in the real world, there does not appear to be a mechanism — constitutionally speaking — to force the Senate to come back. The Mississippi Constitution does say members can be “compelled” to attend a session in order to have a quorum, but many experts say that language would not be relevant to make an entire chamber return to session after members had voted to adjourn.
In the past, one chamber has failed to return to the Capitol and suffered no consequences after the other remained in session for more than three days.
As a side note, the Mississippi Constitution does give the governor the authority to end a special session should the two chambers not agree on adjournment. In the early 2000s, then-Gov. Ronnie Musgrove ended a special session when the House and Senate could not agree on a plan to redraw the state’s U.S. House districts to adhere to population shifts found by the U.S. Census.
But would Reeves want to end the special session without approval of his cherished income tax elimination plan?
Probably not.
In 2002 there famously was an 82-day special session to consider proposals to provide businesses more protection from lawsuits. No effort was made to adjourn that session. It just dragged on until the House finally agreed to a significant portion of the Senate plan to provide more lawsuit protection.
In 1969, a special session lasted most of the summer when the Legislature finally agreed to a proposal of then-Gov. John Bell Williams to opt into the federal Medicaid program.
In both those instances, those wanting something passed — Medicaid in the 1960s and lawsuit protections in the 2000s — finally prevailed.
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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Feb. 22, 1898
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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.
Mississippi Today
Memorial Health System takes over Biloxi hospital, what will change?
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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
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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.
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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:
- Will patients still be covered under the same insurance plans?
- 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.
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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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