Pratt Regional Medical Center representatives asked the Pratt County Commission for a 12-month moratorium on bond or lease payments while the hospital implements a financial recovery plan following outside assessments.

The request came during the hospital’s routine update to the commission. The presenter said the assessment — described in the meeting packet as about 128 pages — “gave us a really good path forward” and that the hospital is still developing an action plan and seeking additional financing to carry through the turnaround.

Why it matters: The moratorium request affects county revenues that currently offset bond-related rent credits and could change the timing of payments if the commission agrees. Commissioners asked county staff to check account balances and report back on the available surplus sales tax funds that currently fund the rent credit that ends Sept. 30.

Hospital representatives summarized the assessment’s recommendation to increase patient volumes so fixed staffing and other costs are better absorbed. The presenter said the hospital staffs for about 15 patients but has recently been treating roughly nine, and that raising average daily census would improve margins “without any additional expense.” The presentation also listed 10 strategic goals the hospital is pursuing; many remain in implementation and the action plan is “a work in progress.”

The presenter said the hospital’s year-to-date financials (through June) showed net revenue for operations above budget and that nonoperating income, including federal Employee Retention Credit (ERC) payments received in March and June, materially influenced short-term results. The presenter warned the hospital remains sensitive to upcoming Medicare and Medicaid payment changes and noted ongoing discussions at the state level about provider taxes and a new state hospital fund intended to offset certain cuts.

Commissioners asked for clarification on the bond and rent-credit arrangements. County staff advised the surplus sales tax bond funds the rent credit through Sept. 30 and that they did not have a current balance on hand; staff said they would report back as soon as possible. Commissioners and staff discussed the defeasance/defeased-account mechanics used previously and confirmed the underlying bond payoff is projected in 2027.

No formal moratorium was approved at the meeting; hospital representatives said they were requesting an additional 12 months to implement recovery steps and asked the commission to consider the request once staff can report available balances and other details.

The presenter encouraged commissioners and staff to contact them with questions and agreed to provide monthly balance-sheet updates; the presenter said monthly statements are prepared but there is often a one-month lag while the hospital closes each month.