Memorial Hospital presents $2026 budget, board approves resolution

Memorial Hospital CEO Nico presented the hospital istrict—s proposed fiscal year 2026 budget to the Harrison County Board of Supervisors and the board voted to accept the budget.

The proposed 2026 budget projects about $1 billion in net revenue and forecasts roughly $19.8 million net profit for the fiscal year, a margin the CEO described as about 2.5 percent. The board moved to accept the budget and the motion passed on voice vote.

Nico told supervisors the hospital group has replaced prior COVID-era FEMA funding with other revenues, producing current-year results he described as "74% over budget" compared with the previous fiscal presentation and "about 13% over '25." He said the budget presented for 2026 is conservative and that the system expects to "do very well" next year. He also briefed the board on a recent acquisition: the hospital closed on Biloxi Memorial (the former Merit facility) on Feb. 1 and reported that the facility produced a net profit in its first month under Memorial ownership.

Supervisors asked about clinical capacity and trauma designation. Nico said Memorial is designated a level 2 trauma center and that the state has only one level 1 (UMMC). He explained the practical difference between level 1 and 2 centers boils down to in-house coverage requirements (for example, having a general surgeon available for on-call response) and said the hospital is considering creating a general surgery residency program to meet level 1 staffing criteria; the organization has two years to decide whether to pursue that option.

Board members also questioned obstetrics coverage at Biloxi Memorial. Nico said the hospital had trouble maintaining continuous OB call coverage after several OB physicians stopped delivering; for safety, the hospital will transfer labor and delivery patients to Gulfport while working to recruit 3 nd 4 OB providers and create an OB emergency department (OBED) at Biloxi before resuming deliveries. He said a standalone labor-risk program typically requires about 1,500 annual deliveries to be viable, and that the immediate priority is an OBED and stable call coverage rather than rebuilding a labor-risk unit or a full NICU.

On a related operational point Nico said the system has been studying whether to resume or expand services and emphasized the goal of keeping care and health care dollars in-state. After discussion, a motion to accept the hospital—s 2026 budget was made, seconded and approved by the board.

The board did not record individual tallies for the budget vote in the transcript; the motion passed by voice vote.