Sherry Medical Center trustees report improved collections but record a monthly operating loss; approve bank signers and staff reappointments

Sherry Medical Center trustees on the meeting approved several routine and finance-related items after a finance presentation that showed improved collections but a monthly operating loss.

The board accepted the hospital's written reports and finance statements for August and September 2025, heard that operating cash stood at $114,007 at the end of August, and was told accounts receivable totaled about $3,300,000 — down $178,000 from July and the lowest level the CFO said the hospital has seen in at least six months. Trustees were also told gross revenue for August was nearly $2.2 million and net patient revenue was $983,456, an increase of almost $200,000 attributed in part to lower contractual allowances tied to the swing-bed program.

Despite those improvements in collections, the hospital reported a net operating loss for August of $151,008.10; after accounting for sales tax the presenter reported a net operating loss of $35,002.84. Year-to-date operations showed a cumulative loss of $348,140; the presenter said that difference from last year is largely explained by a $317,000 payment that usually arrives in August but was received earlier in the current fiscal year.

Trustees were told accounts payable for August was $583,222 — the presenter said that level had not been seen “in a long time” — and that the hospital recently paid off its line of credit. The board also heard that the revenue-cycle improvements tied to the Code Quick implementation and billing efforts have reduced complaints and materially lowered receivables. The CFO reported the organization is preparing data to begin a third-party underpayment audit and recovery process that would examine possible underpayments over the prior five years.

The board took several formal votes by roll call. The motions and outcomes are listed below.

Votes at a glance

- Approve consent agenda (items A–C: minutes and check reports). Motion by Dr. Brown; second by Dr. Simon. Roll call: unanimous yes. Outcome: approved. - Accept Sherry Medical Center written report for September 2025. Motion by Dr. Simon; second by Mr. Bowman. Roll call: unanimous yes. Outcome: approved. - Approve ICS accounts at High Plains Bank with Kenneth Allen and Kelly Parker as authorized signers. Motion by Mr. Bowman; second by Dr. Simon. Roll call: unanimous yes. Outcome: approved. - Reappoint medical staff items 5b1–5b4 (Scott Burke, MD; Joy Burke, pediatrics; Braden Reed, courtesy; Jodilyn Aquino, courtesy). Motion by Dr. Simon; second by Mr. Bowman. Roll call: unanimous yes. Outcome: approved. - Approve revisions report dated 08/31/2025. Motion by Dr. Simon; second by Dr. Mosberg. Roll call: unanimous yes. Outcome: approved.

Discussion and context

Board members and staff highlighted that the drop in accounts receivable is primarily the result of strengthened billing and collection activity. The CFO noted gross revenue declined slightly month to month, and patient days on the inpatient acute/swing-bed side fell (the presenter reported swing-bed days of 11 in August versus 43 in July), which contributed to the month’s revenue decline. Clinic visits were reported at about 1,413 in August compared with 1,449 in July.

The board was also briefed that swing-bed contractuals were affecting net patient revenue figures because Medicare reimbursement rates for the program differ from other payers; staff said they would “get that looked at and straightened out.” Trustees were told there were no invoices older than 90 days except for PMC deferred invoices associated with a contract, which staff said will be paid when cost-report settlements arrive.

Next steps

Staff said they will proceed with preparing the data package for the third-party underpayment audit and continue monitoring swing-bed contractuals and clinical volumes. Several trustees expressed appreciation for the improved cash flow and collections efforts.