Bamberg County Council gave first reading approval by title only to a ordinance giving the Bamberg County Hospital permission to seek a $425,000 loan and a line of credit up to $1.5 million following an hour-long executive session Wednesday night.

Hospital officials previously announced the health care facility had a combined loss of $2.2 million for the fiscal year that ended Sept. 30.

Both the loan and line of credit were initially going to be secured by the real estate, improvements and equipment of the Bamberg County Nursing Home, but Bamberg County Attorney Richard Ness informed council that the law does not allow for the mortgaging of county property.

Instead, the hospital will borrow the money through revenue bonds, or notes payable from the revenues of the hospital as opposed to mortgaging the property as collateral for the loan, the attorney said.

"The next meeting will be the second reading of this proposal and we anticipate it being very short," Council Chairperson Dot Tatum said. "We cannot waste time in this matter."

During a meeting Monday night, council discussed the possibility of amending two ordinances which would change hospital board membership, one of which would have reduced the board membership from 10 to 7. The amendment would have eliminated medical staff as members of the board.

The amendment drew the ire of several hospital officials and, on Wednesday night, council tabled the amendment.

Hospital Board Chairman Randy Maxwell said he is pleased that the council gave the medical facility approval to seek a loan.

"We are very pleased that the county council has readily shown their commitment to this hospital," Maxwell said.

Council is scheduled to give second reading to the ordinance outlining the loan terms at 5 p.m. Friday at the Bamberg County Courthouse.

T&D Correspondent Larkin Hiott can be reached by e-mail at larkinhiott@hotmail.com. Discuss this and other stories online at TheTandD.com.

You must be logged in to comment.