Jefferson Memorial Foundation Hospital Board

The Jefferson Memorial Hospital Board met last week to determine where they stand in the movement of around $12 million dollars from its current investment site. The money is now invested with Catholic Health Partners. The Board is determining where and how the money can be invested. Before, the funds were considered private funds and the restrictions for public funds did not apply. The investment is currently enjoying a much higher interest rate than it will if moved to a short term investment situation locally. Most local financial institutions provided low rates, with the highest quote at around .21%, if the money must be held in a short term investment. Only the money that is garnered through interest, not principal, can be used for grants for locally beneficial programs. The amount of interest that the Board can establish for the investment will directly determine the level of support that the Jefferson Memorial Hospital Board can give to those that are in need of assistance. Because no ruling has been rendered from the Attorney General or the Tennessee Comptroller’s Office, the Board will request that the money be allowed to remain in its present investment location until a determination has been made regarding its placement as private or public funds and the investment opportunities available for it. Though Catholic Health Partners has indicated their readiness in releasing the funds, local officials will make the request for latitude until more particulars on the future of the funds are available. Local short term investments are not promising for generation of grant funds and a long term solution for housing the money depends on how the funds are considered. Jefferson County is unique in the situation that it currently finds itself and it is possible that legislation will need to be passed to address the issue. Should a ruling that is financially unfavorable come down from the State, the Board does have the ability to petition for reconsideration. The Board will await information from Catholic Health Partners on their willingness to extend the current investment, while the Boards seeks a ruling that is favorable for Jefferson City and Jefferson County.