Appling County commissioners voted to proceed with a draft intergovernmental agreement to advance $2.5 million to Applin Healthcare, with the county recouping the funds by reducing annual payments over a 10‑year period and a contractual clause allowing acceleration of repayment if the hospital meets specified profitability metrics.

The agreement presented to the board would provide a $1 million initial advance, followed by $500,000 quarterly advances, for a total of $2.5 million. Under the county's proposed structure the hospital would receive less of its normal annual allocation each year so the county could recover the advance over time.

Why it matters: Commissioners said the advance is intended to give the hospital capital to stabilize operations while it pursues longer‑term financial recovery. Hospital leaders told the board they have shown improved operating results in recent months but asked for "breathing room" to maintain that progress.

At the meeting, Matt Wilmot, attorney for Applin Healthcare, described the financing as "an advance" rather than a loan: "You're advancing them money that you give them over a period of time ... you're just giving it to them upfront," Wilmot said. He recommended adding a provision allowing the county and hospital to shorten the repayment period if the hospital posts a sustained record of profitability.

Lee, the hospital's interim CEO, told commissioners that half of the county's existing $1 million annual allocation to the hospital is already committed to EMS under an agreement that dates to the late 1990s. "The million dollars that we currently receive, 500,000 of that is a part of the EMS agreement," Lee said, noting that the EMS funding must continue even if the county adjusts other allocations.

Robin, who the hospital identified as its finance lead, gave an unaudited update showing the hospital's operating position improving. Robin said the hospital closed December with a small profit for the month and that fiscal 2024 ended with a smaller loss than earlier projected: "When we were here last month we said ... we were projected to be a loss of $4,500,000. When we ended fiscal year 2024 ... we were at a loss of $2,800,000 ... we actually turned a profit for the month of December a little over $52,000," Robin said.

Commissioners discussed the term length. Wilmot said the hospital proposed a 10‑year schedule but that shorter terms (seven or eight years) had also been discussed. Wilmot recommended including an objective metric that would permit acceleration of repayment if the hospital achieved sustained profitability; as drafted at the meeting he and the county attorney suggested four consecutive profitable quarters as the trigger.

The board voted to proceed with the draft intergovernmental agreement as discussed: a $2.5 million advance repaid by reducing future annual allotments over 10 years, with an added clause allowing renegotiation or acceleration of repayment after a defined period of sustained profitability. The motion passed with "all in favor" recorded on the floor; the agreement must be finalized in writing and signed by both the county and the hospital authority before it becomes binding.

The county attorney and county manager were authorized to finalize contract language reflecting the 10‑year schedule and the profitability clause discussed at the meeting. Commissioners noted the arrangement would not alter the EMS allocation of $500,000 the county already provides under a separate agreement.

Looking ahead: The signed counterpart will return to the board as a final contract once the hospital authority executes its portion; county officials said the hospital authority planned to consider the counterpart at its next meeting.