By Mary Alice Murphy

The Beat had follow-up questions to the previous answers received from Gila Regional Medical Center.

Interim Chief Executive Officer Scott Manis replied with clarification on the connection between the application to the Internal Revenue Service to establish Gila Regional as a not-for-profit 501(c)3, in addition to its status as a county-owned hospital.

He referred back to the May GRMC Governing Board meeting, when the audit for fiscal year 2020 was mentioned, with one finding being connected to the hospital retirement fund. Two other audit findings have already been resolved.

Manis said when the retirement fund was set up back in the 1980s, it was structured as a 403(b) plan, which is only for non-profit organizations.

"It should have been set up as a 457(b) structure, which is for government entities, and is what the county has," Manis explained. "The auditors noticed it last year. We had a couple of options to fix it. The preferred option was to have the hospital apply for the 501(c)(3) designation."

He emphasized that once the designation is received, "it doesn't change anything. It's just about curing the audit finding. Of course, it will cost us to make the change to the dual status. We will engage legal counsel to have us become a 501(c)(3)."

Interim Chief Financial Officer Greg Brickner said at the Governing Board meeting on May 25, 2021, that the legal counsel they found does only this work on figuring out retirement issues. "There's a program in the IRS called the employee resolution system, so the IRS has figured out it is a common problem, and it has figured out a way in the code to address it. It will fix the audit problem and literally, if the IRS approves it, we wouldn't have any disruption to our employees. It's the simplest path forward."

Manis confirmed that today by saying: "As a 501(c)(3), we would be able to keep the retirement plan as it is now."

He also noted that once the hospital receives the not-for-profit designation, it can accept donations as charitable gifts, making them tax deductible to donors. "We can also apply for grants, but that's in the future. Our primary reason for the change right now is to fix the audit finding."

Manis noted that he, as a community resident, has invested himself in Gila Regional, as have other community residents, staff and patients. "I want to see this place be successful. We continue to pursue our commitment to serve the community well."

Click to search the Beat Click to search the Beat

Get Updates Three Times a Week

Welcome to the Update! You will receive emails 3 times a week with links to recently posted articles.


You can unsubscribe anytime. We never share or rent your email to anyone.

Submitting to the Beat

Those new to providing news releases to the Beat are asked to please check out submission guidelines at They are for your information to make life easier on the readers, as well as for the editor.

Advertising: Don't forget to tell advertisers that you saw their ads on the Beat.

Classifieds: We have changed Classifieds to a cheaper and shorter option. Check periodically to see if any new ones have popped up. The former software failed us, so it's just a category now, with prices posted. Send your information to and we will post it as soon as we can. Instructions and prices are on the page.

Editor's Notes

Here for YOU: Consider the Beat your DAILY newspaper for up-to-date information about Grant County. It's at your fingertips! One Click to Local News. Thanks for your support for and your readership of Grant County's online news source—

Feel free to notify if you notice any technical problems on the site. Your convenience is my desire for the Beat.  The Beat totally appreciates its readers and subscribers!  

Compliance: Because you are an esteemed member of The Grant County Beat readership, be assured that we at the Beat continue to do everything we can to be in full compliance with GDPR and pertinent US law, so that the information you have chosen to give to us cannot be compromised. 

Content on the Beat

WARNING: All articles and photos with a byline or photo credit are copyrighted to the author or photographer. You may not use any information found within the articles without asking permission AND giving attribution to the source. Photos can be requested and may incur a nominal fee for use personally or commercially.

Disclaimer: If you find errors in articles not written by the Beat team but sent to us from other content providers, please contact the writer, not the Beat. For example, obituaries are always provided by the funeral home or a family member. We can fix errors, but please give details on where the error is so we can find it. News releases from government and non-profit entities are posted generally without change, except for legal notices, which incur a small charge.

NOTE: If an article does not have a byline, it was written by someone not affiliated with the Beat and then sent to the Beat for posting.

Images: We have received complaints about large images blocking parts of other articles. If you encounter this problem, click on the title of the article you want to read and it will take you to that article's page, which shows only that article without any intruders. 

New Columnists: The Beat continues to bring you new columnists. And check out the old faithfuls who continue to provide content.

  • The Beat has a column for you gardeners out there. The Grant County Extension Service will bring you monthly columns on gardening issues.

Newsletter: If you opt in to the Join GCB Three Times Weekly Updates option at the top of this page, you will be subscribed to email notifications with links to recently posted articles.

Go to Top