Opinion ID: 1802251
Heading Depth: 3
Heading Rank: 4

Heading: Self-Insurance through excess revenues

Text: Section 41-13-35(5)(h) of the Mississippi Code grants the board of trustees of community hospitals the authority to file suit on behalf of the community hospital and to defend and/or settle claims against the community hospital and/or its board of trustees. Miss. Code Ann. § 41-13-11 (Supp. 1991). Any revenues that Singing River Hospital generated over its operating expenses for any given period went into the hospital's balance sheet account entitled excess revenues. These funds were carried forward to meet future expenses and revenue shortfalls incurred by the hospital. Appellants argue that, traditionally, SRH has used funds from its excess revenues account to settle claims and pay judgments pursuant to the authority granted to the Board by § 41-13-35(5)(h). Thus, appellants claim that by paying for settlements and judgments out of its excess revenues, SRH has self-insured itself and that SRH has waived its immunity to the extent of its excess revenues. First, there is no support in the record for appellants' claim that SRH has used funds from its excess revenues account for such purposes. Furthermore, even if SRH had used its excess revenue funds for such purposes in the past, there is no support  either in Title 41 or the caselaw construing it  for the proposition that such expenditures would constitute a waiver of immunity with regard to such future excess revenues.