IRWIN COUNTY, Ga. (WALB) - Employees at Irwin County Hospital will receive their delayed biweekly paychecks on Friday, Feb. 27, hospital leaders said, one week after payroll was originally due.

>> Previous Coverage: ‘Despite numerous attempts’: Mayor says city shut off hospital’s water over $20k balance <<

Employees were notified of the delay in an email sent on Thursday, Feb. 20, informing them they would not be paid the following day.

The hospital has been operating at a deficit, and hospital officials used a Thursday, Feb. 26, board meeting to publicly outline a financial recovery plan.

Board members said the hospital was approved for a $100,000 intergovernmental agreement loan from Irwin County and received a $200,000 no-interest, no-deadline loan from the Irwin Healthcare Foundation.

Board Chairman Walter Hudson said those two funding sources are enough to cover the upcoming payroll obligations.

“The foundation stepped up and gave us a long-term loan at no interest. That should cover all the upcoming payroll. The county stepped up and gave us another significant amount of money. That should enforce the next six to eight weeks, just those two checks,” Hudson said.

Board members also confirmed employees will receive their next paycheck on March 6 to realign with the hospital’s normal biweekly pay schedule.

When asked directly whether employees could count on receiving both checks, Hudson was straightforward.

“They’re going to receive their checks. They’re going to receive the checks from last week. They’re going to receive whatever is this week or next week. It’s in the bank. We’re ready to make those payments,” he said.

Some employees attended the board meeting. A few provided statements about the hospital’s recent events.

The outpatient clinic staff has been and are continuing to be dedicated in serving the patients in our communities. After the board meeting today, staff are encouraged that we are headed in a positive direction. 

I am encouraged by the actions of the new board, and I would like to commend them for all they are doing; I have been an employee for almost twenty years, through some very tough times, but we never missed a paycheck. We have lost some loyal, dedicated employees because they could not go without a paycheck, and the uncertainty of the future of the hospital. 

Plan Moving Forward

Board members also detailed a $1.4 million federal grant from the Rural Health Transformation Program expected to arrive in the middle of March. Hudson explained the grant would carry broad spending flexibility, including supporting administration expenses.

The hospital is also transitioning from a Rural Emergency Hospital (REH) designation to a Prospective Payment System (PPS) hospital. Board members said the transition is expected to be finalized by the end of March, which would allow the hospital to access additional tax credits and funding.

Hudson said he is hopeful once the conversion is complete.

“The first step is to get the employees paid. The second step is to convert our hospital back to a regular hospital. And then once we do that, I think we have already got some funding that is waiting for that to happen in March. So, I look for a very profitable April and May,” Hudson said.

Despite the recent financial setbacks, Hudson, who has been board chairman for nearly four weeks, expressed confidence in the hospital’s new leadership and its path forward.

Three new members joined the board, and former CFO Mary Demian was named CEO, both changes taking effect in January 2026.

“The hospital is going to stay open. Absolutely... Yeah, we had a cash flow problem. The problem I see is there are several aspects of the hospital that have been neglected by the past administration. And now we have a new CEO, which I’m very confident in and we have a new board,” Hudson said.

He added that the board is reviewing vendor contracts and financial obligations inherited from the previous administration, saying those adjustments alone could improve monthly cash flow by approximately $120,000.

Hudson also called on the community to support the hospital through donations, saying donor contributions would go beyond stabilization.

“I think the donors will be something that will elevate us... We’ve got a plan to get our government payments and the people that come into our clinics; we’re making money. The donors will just sort of be the cream of the crop,” Hudson said.

The payroll issue came about a month after the hospital’s water service was shut off over an outstanding $20,000 balance. City officials said Ocilla’s mayor ordered the disconnection after the bill went unpaid.

Hudson acknowledged the hospital still owes money to vendors, including the city, and said the board is working to address all outstanding obligations.

“We had our backs up against the wall. But now, with the county and with the foundation’s help, we’ve rounded that curve,” Hudson said.

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