Hila Regional Medical Center reports patient volumes up, warns Medicaid changes could cost $1M per 5% cut

Hila Regional Medical Center reported higher patient volumes and an operating surplus for July, but hospital leadership warned commissioners that changes to Medicaid eligibility and possible future rate changes could significantly affect the hospital’s finances.
CEO Robert Whitaker told the board that admissions, discharges and outpatient visits in July and August were higher than the prior year, and that outpatient services such as lab, radiology, rehab and cancer-center visits showed notable increases. The hospital recorded about $525,000 in net surplus for July, excluding state-directed payment programs, he said.
Whitaker reviewed ongoing capital work including an operating-room HVAC project that will temporarily close two ORs at the end of the month and architectural planning for MRI, CT and registration upgrades. He also said U.S. Sen. Heinrich’s staff recently toured the facility.
On Medicaid, Whitaker said the recently passed state-level bills include provisions that could reduce the number of people eligible for Medicaid and alter related supports. The hospital’s analysis estimates that for every 5 percent reduction in Medicaid reimbursement rates, the facility would incur about $1 million in annual revenue loss. He said it is difficult to quantify the full impact of eligibility changes and noted that some adjustments may not take effect until federal fiscal year 2027.
Whitaker said the hospital’s current Medicaid patient mix represents roughly 22–25 percent of its business and that leadership is monitoring legislation, evaluating scenarios and preparing financial analyses.