Update: Hospital Borrows Money To Meet PayrollJun 7th, 2011 | By Jacob | Category: Front Page
By Jacob Bembry
Greene Publishing, Inc.
According to papers given out at a recent Madison County Memorial Hospital Board meeting, the hospital has over $700,000 in accounts payable that have not been paid.
Almost $300,000 of the money is overdue by 90 days, with $150,000 of it overdue by 60 days.
The hospital has been having trouble meeting payroll. David Abercrombie, Chief Executive Officer of Madison County Memorial Hospital, confirmed this.
Abercrombie said that the hospital had received a loan to meet payroll recently. When asked who had loaned the money, Abercrombie said the loan was made anonymously.
Abercrombie said that he had problem with releasing the lender/lenders’ name(s) but the lender had requested anonymity.
When asked if the reason behind the lender requesting anonymity was due to a conflict of interest, Abercrombie answered, “Not at all.”
Information the newspaper received about who had given the loan would represent a conflict of interest if it proves to be true.
There was no collateral given for the loan, only a promissory note.
The hospital also had a recent visit from an auditor with the United States Department of Agriculture (USDA). The auditor expressed serious reservations about the present and future hospital to be constructed being viable.
Update: Abercrombie called Jacob Bembry at 1:54 p.m. on Tuesday, June 7, and informed him that Cary Hardee, the hospital board’s attorney, said that the loan had been made to the not-for-profit corporation of the hospital and that should guarantee the anonymity of the loan.