Mississippi hospital shuts down ER, unable to pay employees

Employees of North Oak Regional Medical Center in Senatobia, Miss., have not been paid in more than two weeks, according to WREG.

About 150 employees were unable to cash the checks they received from the hospital July 20. The bank told the employees there was no money in the hospital's account.

North Oak Regional Medical Center CEO Philip Hanna told WREG the hospital can't access the funds needed to pay employees.

"The money is not the issue," he said. "We have the money in the account. It just needs to be transferred from California to Mississippi."

Mr. Hanna said new bank security measures prevented the hospital's out-of-state owner from transferring the funds.

The hospital is dealing with the payment issues just a few weeks after shutting down its emergency room due to financial challenges, according to the report.

In early July, Mr. Hanna told WREG the hospital was losing about $100,000 a month.

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