The Demorest City Council this week ratified the termination of a long-standing security contract with Habersham Medical Center. The move comes ahead of Northeast Georgia Health System taking over the hospital in the coming weeks.
The security contract began in November 2017 and has been a source of revenue for Demorest to help cover some police department expenses through the years.
The Habersham Hospital Authority terminated the contract in May. The Demorest Police Department ceased operating as the security provider for the hospital on May 5, and Northeast Georgia Medical Center brought in its own security personnel on May 6.
Ahead of Tuesday’s vote ratifying the contract’s termination, Demorest City Manager Mark Musselwhite explained to the city council it would save the hospital money.
The cost savings to Habersham Medical Center will be approximately $18,666 for the months of May and June of this year.
The contract provided a revenue stream of approximately $112,000 annually to the city of Demorest. Musselwhite said losing that revenue will not significantly impact the city’s finances.
“It was a revenue/cost neutral item for the most part,” he told Now Habersham. “So, no issue at all.”
