Coffee County Hospital seeks $4.2M budget increase amid growing financial challenges

The Coffey County government meeting held on June 10, 2025, focused primarily on the budget requests from Coffey County Hospital and the ambulance services. The discussions highlighted significant financial challenges faced by the hospital, including a proposed budget request of $3,111,025, which represents an increase of $1,071,521 from the previous year. The ambulance service requested $1,104,994, an increase of $83,247.

Hospital representatives explained that the budget increase is necessary to address projected losses and to provide cost-of-living raises for staff, which are currently not included in the budget. They indicated that the requested funds are less than the anticipated financial shortfall for 2025, which is expected to exceed $600,000 for the first half of the year alone. The hospital's financial situation is further complicated by the lack of a capital budget and ongoing challenges with Medicare and Medicaid reimbursements.

The meeting also addressed staffing issues following the closure of the labor and delivery department. Hospital officials confirmed that all affected employees were offered positions within the organization, ensuring job retention for the majority of staff. The hospital currently employs approximately 230 individuals, making it a significant employer in the county.

Concerns were raised regarding the impact of reduced Medicare reimbursements, which could lead to an additional $300,000 loss in funding over the next year. The hospital's representatives noted that they collect only about 55% of every dollar billed, which has been exacerbated by declining reimbursement rates from insurance companies.

The discussions underscored the hospital's reliance on public funding and the economic impact it has on the local community, with an estimated annual economic contribution of $37 million based on employee salaries. The meeting concluded with a recognition of the hospital's ongoing investments in infrastructure and equipment, totaling $4 million over recent years, despite the financial strains exacerbated by the COVID-19 pandemic.

Overall, the meeting highlighted the critical financial challenges facing Coffey County Hospital and the ambulance service, as well as the importance of continued support from the county to maintain essential healthcare services in the region.