Petersburg hospital reports rising inpatient volumes, improves collections as $27 million work building moves through Certificate of Need

Petersburg Medical Center reported stronger inpatient and swing‑bed activity and a decline in accounts receivable days at the board meeting May 21, while staff updated trustees on the hospital’s $27,000,000 work building and steps to complete a Certificate of Need application that will include the MRI installation.

Hospital finance staff said inpatient and swing‑bed days rose markedly year‑over‑year and that April was the highest revenue month in nearly a year. Phil, a staff member who presented the executive report, said the business office’s decision to bring accounts receivable work in‑house led to a recent drop in AR days: “81 as of May 19,” he reported. Board members were told the board’s working target is about 65 days in accounts receivable.

Why it matters: lower AR days and faster collections improve near‑term cash flow and affect cost‑based reimbursements; the new work building’s depreciation and the hospital’s 340B participation are expected to affect future cost reports and reimbursements.

Board financial highlights presented included: gross patient receivables of about $7.6 million as of April, roughly $1.6 million in cash on hand, and about $1 million in investments. Jason, a staff member in finance, told trustees that bringing in claims work from an outside vendor led to quicker collections in May and that management is aiming for a sustained reduction toward the 65‑day goal. He also explained the difference between gross and net AR measures and why the gross number provides a clearer picture for collection performance.

The board heard updates on several revenue and program lines that affect the budget. The newly implemented 340B drug‑pricing program generated roughly $115,000 in revenue last month, with related expense roughly half that amount, staff said. Trustees were also told the hospital received a finalized settlement on a prior cost report that added about $454,000 to this year’s results.

On capital projects, staff said the work building and MRI will be included in the state’s Certificate of Need review after recent discussions with the state clarified that the agency is treating the campus replacement as phased construction rather than a standalone MRI application. Project schedule milestones reported to the board included planned commissioning in June, furniture expected to arrive in July with payouts anticipated that month, MRI equipment arrival in mid‑July, and a planned community grand opening in September. One staff member summarized the Certificate of Need status: the state “wants to see the whole building” and staff are updating the application with project totals and schedule.

The finance presentation also covered federal advocacy and risk areas: staff described ongoing concerns about Medicaid funding uncertainty and tariffs affecting medical supply costs, and said they are forwarding tariffed invoices to congressional delegations as they find them. Board discussion included questions about how capital depreciation will affect future Medicare/Medicaid cost reporting and whether expected federal program changes would alter planning.

The board did not take a formal vote on the work building or Certificate of Need at this meeting; staff said final filing and follow‑up were underway and would return for further review.