Commissioner raises $10 million accounting concern at Montgomery County meeting; staff says hospital had initial contract

Commissioner Sanki raised sharp concerns about Jackson Hospital's handling of county funds during the Montgomery County Commission meeting on June 16, saying the hospital received $10 million that was used for January payroll before the county had received invoices required under the county's agreement.

"We just ran through $10 million. They took $10 million of our money and it was payroll for January," Commissioner Sanki said, calling that sequence of events problematic and saying the county cannot sustain such operations on the backs of taxpayers. Sanki urged that the commission consider a fresh start and proposed exploring a regional hospital authority and new tax structure to support the facility.

A county staff member responded that the hospital had signed an initial contract in January and later requested language changes; when funding was requested, the staff member said, documentation on intended expenditures was provided and it was understood that operational funding could include payroll. "It was always understood ... the funding that they would receive would go into operations. Included in operations is payroll," the staff member said.

The exchange in the public meeting left the matter unresolved: commissioners expressed concern about oversight and whether the hospital complied with the resolution's invoicing and documentation requirements. The transcript records disagreement over timing: Sanki said invoices were not received before funds were spent in January, while the staff member said an initial contract had been signed and paperwork submitted later.

No formal vote or directive to pursue a hospital authority was recorded in the meeting minutes. The discussion concluded with commissioners signaling intent to re-examine how the county provides financial support to the hospital.