March 21, 2023 |
Photo – MHCC – Bigfoot99 file photo
A new payment policy at Memorial Hospital of Carbon County may give the facility some breathing room as it continues to face financial challenges.
Like many cash-strapped rural medical providers, the hospital in Rawlins operates on a tight budget. At the March 7th Carbon County Commissioners meeting, MHCC’s Chief Executive Officer Ken Harman said the hospital has less than one-week of operational reserves.
The $16 million in unpaid bills by patients lies at the center of the hospital’s financial dilemma. To better manage cash flow, MHCC is changing its management software provider to a company called Cerner. Harman said medical vendors, including Cerner, are allowing the hospital to pay in installments.
To receive an injection of cash, the hospital’s board of trustees and Senator John Barrasso have applied to the Federal Emergency Management Agency for COVID relief funds. Harman said FEMA money is now on the way.
In a cost-cutting move, the hospital is dialing back the use of traveling health care providers. The temporaries fills gaps in the hopsital’s workforce, but the temporary care providers come at a high price. Harmons said the facility is looking to cut five travelers from staffing positions.
Harman also said administrators have made significant changes in the way the hospital collects payments for patient care. In addition to working with debt collectors to recoup outstanding bills, Harmon said the hospital now offers financing options to uninsured or underinsured patients who are unable to afford medical care.
MHCC can no longer rely on people reimbursing the hospital after treatment, including surgeries. Harman said for the hospital to remain financially healthy, the facility must collect upfront payments or have a payment plan in place.
Harman said the installment plans, in the form of a car loan, have been a hard sell for county residents. He said the hospital has been pushing patients to finance medical procedures, even if the borrower defaults, because the federal government will compensate the hospital for a percentage of the loan. Harman said it’s a win-win situation.
Harman said the hospital has seen an increase in self-insured and underinsured patients. He mentioned that Sinclair refinery now provides insurance to fewer employees. The refinery’s new policy has meant that the hospital is seeing more uninsured patients. Harman said financing may not be a popular option, but the new billing policy will strengthen MHCC.
Harman said changes to the way MHCC collects money are required. He said he remains optimistic, but he wanted to provide the commission with an honest assessment of the state of the hospital.
Harman told the commission the hospital has an interim Chief Financial Officer. He also asked the commissioners for a meeting to discuss building maintenance costs. No date was set for the meeting, but the commissioners and Harman agreed it should take place before summer’s budget hearings.
