In the Fiscal Year which ended June 30, the hospital lost $1.3 million.
Last week, the hospital did not have enough money on hand to make its payroll, until it received a sales tax advance from the county.
According to board member Bill Pace, $700,000 in hospital debt is 90 days past due.
"The financial reputation of the hospital is ruined," Pace said, as the board discussed financial problems. "Those bills should have been kept on 30 days (payment). You've done that (delayed debt payments) to make those payrolls we didn't need and you made those local vendors suffer for it."
Board member Danny Perryman, who also supported dismissing Hammond, said, "I have supported and tried to support Mr. Hammond. As direct as we could, (we tried to) tell him we had to cut payrolls, we had to cut expenses; something had to be done. He has absolutely defied us in that."
The board met with hospital department heads on Wednesday, August 10, to inform them of Hammond's dismissal and ask for them to recommend what staff reductions and cuts they can make to reduce other expenses.
As the board tries to address its financial problems, it also voted to make contacts with other hospitals in the area, concerning possible "partnerships."
Board member Sue Hertzog told fellow members, "We've tried everything and we're still in trouble. I think our only choice is to go with another hospital, myself."
Board members believe the Ozarks Medical Center in West Plains or the Baxter Regional Medical Center may be interested, but members would want to lease the hospital to a partner, with the board retaining some input on operations.
Board President Jerry Estes told department heads, "Fulton County Hospital is not just shutting its doors. This board is dedicated to the continued operation of this hospital."
At its August 22 meeting, the board will discuss staff and expense cuts needed to keep the hospital running in the short term.
In recent days, the hospital has reduced its payroll by eliminating at least six full-time positions and one part-time position.