Memorial Hospital CEO presents 2026 budget projecting nearly $1 billion in net revenue; board approves

Nico, CEO of Memorial Hospital, presented the hospital's proposed fiscal year 2026 budget and said the system is budgeting nearly $1 billion in net revenue for the coming year. The board of supervisors moved to accept the budget and voted in favor.

The presentation outlined recent operating results and service changes. Nico said fiscal-year-to-date performance has outpaced the prior year, noting the hospital is running as much as 74% over last year's budgeted figures in some comparisons and is projecting about $19.8 million in net profit at a roughly 2.5% margin by year end. He attributed part of the prior-year variance to one-time COVID FEMA funds that had been included previously and said those were replaced with recurring operating revenue this year.

Nico also described Memorial's recent acquisition and integration of the former Merrick hospital in Biloxi, which closed Feb. 1 and produced a net profit in its first month under Memorial management. He said the Biloxi market appears to be financially improved under the new ownership.

On emergency and surgical services, Nico said Memorial is designated a Level II trauma center and discussed what would be required to seek Level I status, including establishing a general surgery residency or 24/7 in-house general surgery coverage. "The difference really is in-house coverage," he said, describing Level I requirements and noting Memorial has two years to decide whether to pursue a general surgery residency program.

Nico addressed obstetrics at Biloxi Memorial. He said the hospital had reduced services because call coverage fell to an unsafe level after several OBs stopped taking deliveries. "We had some close calls," he said. Memorial is planning to transfer laboring patients to Gulfport when needed and to build toward restoring a direct-labor-floor model with an OBED (an obstetric emergency department) and 24/7 laborist coverage; he estimated a multi-year timeline to restore local deliveries. He said a full laborist model typically requires roughly 1,500 annual deliveries to be sustainable and that a NICU would not be necessary for initial plans.

Board members also asked for an update on mental-health and diversion efforts. Nico described regular coordination meetings with the Pine Belt CSU and local law enforcement and noted progress on diversion-center planning and outpatient pathways. He thanked county and municipal partners for steps to reduce unnecessary emergency detentions and said the hospital has been carrying daily operating costs to keep patients safe while placements are arranged.

After the presentation there was a motion and second to accept the budget; the board voted in favor.

The hospital's presentation emphasized conservative budgeting and several service-level initiatives that remain dependent on workforce recruitment and external approvals. No additional appropriations or specific capital contracts tied to the 2026 budget were approved during the board meeting.