Clayton rethinks $95M bond for Southern Regional

The Clayton County Commission is rethinking a pledge to help the county’s only hospital with a $95 million bond.

That could mean financial trouble for Southern Regional Health System in Riverdale.

The county commission initially voted to back a bond to help the 376-bed community hospital with its troubled budget. But that was before Wall Street crashed, before the state slashed funding and before foreclosures soared, County Commission Chairman Eldrin Bell said Tuesday night.

“I must exercise due caution as we move on all fronts, not just with the hospital bond,” Bell said.

On Tuesday, Bell asked hospital officials to provide additional financial information before he signed off on the bond. Bell said he is not sure of the impact the hospital bond would have on the county’s finances, but he’s concerned about adding more debt.

“It is my responsibility and my daily duty to stay on top of these matters,” Bell said.

Southern Regional is struggling to meet rising costs and declining donations. The bond would help retire outstanding debt, fund facility renovations and strengthen the hospital’s cash reserve, hospital spokeswoman Kari Hilyer said.

Hilyer declined to say if the hospital could continue to operate without the bond or detail any impact on patient care.

“I can’t say how necessary the money is, but obviously we would have to re-evaluate,” she said. “We don’t have any reason to think the county is going back [on its offer].”

Hilyer said the hospital has made strides to save money. She pointed out that Southern Regional will receive an award from a national health alliance Wednesday for saving $2.1 million in its annual budget through restructuring.

Commissioner Wole Ralph said he is concerned about the county losing its only hospital. With more than 2,200 employees, Southern Regional is one of the county’s top 10 employers.

“I don’t want to be pressured into it, but I don’t want to own the hospital either,” Ralph said. “We have to take a real strong look at our financial picture, particularly when it comes to long-term debt in this market.”

Last year, the hospital admitted 18,122 patients.

County Tax Commissioner Terry Baskin stressed that the county’s finances are stable — he has collected 94 percent of the property tax bills. However, he is concerned about Gov. Sonny’s Perdue’s move to slash the Homestead Tax Relief Grant program, which would cost Clayton about $11 million.