Petersburg Medical Center board reports MRI arrival, financial gains and pending state review of certificate of need

The Petersburg Medical Center Board heard an update July that a new MRI has been delivered and that the hospital’s certificate of need application has been submitted to the state, while financial reports showed revenues and cash on hand above budget for the year.

The board learned the MRI unit arrived last week and that staff expect the facility move-in and equipment installation to continue through the late summer, with clinical use likely after remaining installation and CON review are complete. Phil Hofstetter, CEO, said the hospital submitted the certificate of need to the state and is awaiting formal review. "The certificate of need is what we need to start seeing patients in the MRI," Hofstetter said.

Board members received a detailed financial presentation showing year‑to‑date revenues above budget and a strong cash position. Jason (staff member, finance) told the board revenues for the year were $3,000,673 above budget and that net operating income for the year was about $3.1 million, largely supported by construction‑related grants and employee retention tax credit receipts that the hospital expects to receive over time. "Year to date, we are showing a net operating income of 3,100,000 dollars and most of that, $2,000,000 of that is coming through because of this employee retention tax credit," Jason said.

Jason also reported a correction to a medevac count cited earlier in the meeting: "I reported out 73 ... it actually wasn't 73. It's 59," he said, calling the medevac total for the fiscal year high compared with prior years. Board members and staff flagged swing‑bed volume and inpatient days as noticeably higher this year.

Financial details presented to the board included higher radiology procedure volumes (about 11% above prior year), rebounding rehab and home‑health visits, long‑term care occupancy near 87–90% and accounts payable moving toward current. Days cash on hand was reported approaching 100 days and average vendor payment time around 31 days.

The finance presentation also noted a federal legislative change that reduced one portion of expected employee retention tax credit funds. Jason described an accounting correction of approximately $972,000 to reflect that change but said the hospital still expects to receive the remaining portion of the credit. Discussion included a federal rural health stabilization fund that the state must propose a plan to access; board members said they will monitor the state process and seek participation opportunities.

Board members were told the new facility move‑in will be phased: some departments (public health) expect to relocate in August, while full operational readiness for equipment and IT is likely closer to September due to shipping and installation timelines.

The board also reviewed grant activity tied to the facility and operations, including federal and private grants. Jason said the hospital has several pending grant requests (Alaska Community Foundation, Exact Sciences and federal appropriations requests), totals and timing "not specified" for some pending awards, and that some large construction grants are being depreciated as the facility moves from construction in progress to placed-in-service.

Votes at a glance: the board approved the meeting agenda and the June 26, 2025 board minutes by voice vote; a motion to enter executive session to consider medical staff appointments or reappointments and legal matters was moved, seconded and approved by voice vote.

The board set its next meeting for Aug. 28 in Borough Chambers and recessed into the announced executive session after the public meeting items concluded.