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Pratt Regional Medical Center reports $11M in recent past-due patient accounts; hospital pursues cost cuts and revenue options
Summary
Hospital leaders told Pratt County commissioners the facility faces sustained operational losses, $11 million in past-due accounts (90-day measure), and are implementing cost reductions, revenue-generating services and outside assessments to stabilize operations.
Pratt Regional Medical Center officials briefed the Pratt County Board of Commissioners on the hospital’s financial condition, reporting significant operational losses in recent years and more than $11 million in accounts receivable within the last two years.
A hospital representative told commissioners the county-owned facility has used several temporary programs over the past decade to bridge funding gaps but is now facing a sharper mismatch between rising costs and stagnant reimbursement. The meeting noted national and state analyses showing hundreds of rural hospitals at risk amid a 35% increase in hospital expenses over the last three years (2021–2023 data referenced by the Kansas Hospital Association).
Tanya Powell, introduced in the meeting as interim chief financial officer for Pratt Regional Medical Center, told commissioners the hospital is pursuing multiple measures to reduce costs and increase revenue. Measures discussed included: a hiring freeze for nonessential positions, a 10% pay reduction for the hospital’s senior administration, reduced use of agency/contract labor (agency nursing FTEs reduced from ~18 to 9.6 since mid‑2024), cancellation of nonessential software subscriptions (roughly $80,000 in annual savings noted), and exploring service options with minimal upfront costs (for example, arranging mobile PET/CT services on a contracted truck).
Powell said the hospital is also pursuing outside assessments: a strategic, operational and financial assessment offered through the National Rural Hospital Association and USDA (no-cost eligibility for hospitals with USDA-financed equipment) and a separate clinic assessment. The hospital expects both assessments and specific recommendations to be available around mid‑April.
The hospital reported it applied for an Employee Retention Credit amounting to $4.3 million and had expected payment by the end of 2024; hospital officials said the program is currently on hold at the federal level and payment is uncertain. Officials said that, if received, that payment would materially change the hospital’s cash position.
Commissioners asked how they would be kept informed. Hospital leaders offered to provide monthly financial statements and to share the assessments and any substantive plans resulting from them. The hospital’s board said it does not currently intend to ask Pratt County for ad hoc operating tax support; officials said a potential future revenue request would likely prioritize a sales-tax option over a property tax (mill levy), in part because a large portion of sales tax collections come from nonresident activity.
No formal county action was taken at the meeting; commissioners requested the hospital provide monthly updates on finances and to share the mid‑April assessments when available.
