Alva Hospital Authority reports improved billing, steady volumes; CFO details cash, AR and reporting changes

Hospital leadership at the Alva Hospital Authority meeting in Aug. 2025 reported smoother billing operations, steady clinical volumes in summer months and several reporting changes intended to improve financial transparency.

Kenneth (listed on the agenda for the "old report") reviewed operational highlights for July and August, saying the hospital did not experience the typical summer lull and has hired two recent nursing graduates. Leadership also reported multiple staff members passed board exams and that recruitment remains a priority. Kenneth said staff are working to convert one provider to an RDU contract model that would increase revenue for the provider when they see the hospital's patients.

Kenneth said leadership will attend a Meditech Expanse conference in Boston to learn about recent system updates and to help select an AI-assisted documentation tool for clinicians. He also said the hospital is reviewing campus security measures following a shooting last week at an unrelated Integris facility and will assess potential mitigations locally.

Leadership reported continued improvement in patient-experience review collection. The hospital deployed PatientPoint to surface provider ratings and said the ER is collecting feedback through SQSS iPad surveys; the meeting record included multiple verbatim positive patient comments about ER staff and specific providers.

Kelly, presenting the CFO's report, said the operating cash balance for July was $531,517 (about 13 days of operating expenses, excluding depreciation). Cash fell in August after payment of a roof-replacement invoice and was reported around $400,000 at the time of the meeting. Accounts receivable decreased by approximately $640,000 between reporting periods and had fallen below $4.0 million, to about $3.5 million, which the CFO credited to improved billing processes with the new vendor. The board discussed that gross revenue for the month was $2,359,000 and that total inpatient days were 43 in July compared with 44 in June.

The CFO said one quarterly provider incentive (called the "shop payment" in the meeting) normally expected in July — about $315,000 — did not arrive on the usual schedule; staff were later told the payment had been approved for release and expected to be received soon. The hospital also recorded a net operating loss for the month (operating loss about $434,600; after nonoperating items the loss was about $309,006.29).

The finance presentation noted a $100,000 draw on the line of credit during the period and a $177,000 write-off to a collection agency. Accounts payable for July was $996,000, driven in part by the roof project invoice. The board approved transferring sale proceeds from the nursing home into a 12-month CD at Halveston Bank at an interest rate of 4.05 percent with no early-withdrawal penalty.

The CFO also described reporting changes: clinic revenue has been broken out from outpatient revenue on the financial statements; bad debt and charity care were moved from deductions from revenue to expense per Medicare reporting requirements; and the 340B drug program receipts and dispensing fees were presented separately (gross and net). The CFO said these presentation changes do not affect the reported net income or loss but improve transparency for auditors and oversight.

The convalescent/home report noted modest occupancy changes in July with income of $77,814 against expenses of $84,819, producing a roughly $7,000 loss for that facility; staff continue to coordinate transfers and passthrough payments while the nursing-home transition remains in process.

No formal policy changes to operations were adopted during the operations report itself; the board moved other governance items later in the agenda.