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Coffee Health System presents 2024 finances; board weighs possible closure of obstetrics service after $1M loss
Summary
Hospital leaders told the Coffey County commissioners that the health system ran an operating loss in 2024 and projects another shortfall in 2025; the board and hospital trustees discussed closing labor and delivery because the service lost about $1 million last year while overall operating pressures persist.
Coffee Health System executives briefed the Coffey County Board of Commissioners on Thursday on 2024 financial results and 2025 projections, reporting persistent operating losses, tightened cash reserves, and a potential plan that could include suspending inpatient obstetrics if volumes and reimbursement do not improve.
Stacy Oginski, Coffee Health System chief executive officer, told commissioners that statewide hospital finances are under stress and that Coffee Health is not exempt from those pressures. “Coffee Health System is not exempt from this,” Oginski said as she summarized statewide trends, including lower days‑cash‑on‑hand and staffing cost increases.
CFO Ray (surname not specified on the record) presented financial detail showing gross patient revenue near $45 million for 2024, net patient revenue and operating losses after operating expenses, and nonoperating revenues that offset a portion of the deficit. The system reported an operating loss of roughly $1.9 million in 2024; after a $1.3 million noncash loan forgiveness entry, reported net results moved to a small positive amount, though management said the forgiveness was a nonrecurring item.
Hospital leaders said the hospital spent about $4.2 million on capital improvements over the past two years, including the electronic medical record (EMR) conversion and an MRI acquisition and renovation. Management also reported improved cash collections for 2024 compared with 2023 after billing and collections workflow improvements.
Oginski and trustees told commissioners that the labor and delivery service line had a significant loss in 2024 — about $1 million while performing 68 deliveries — and that volumes are projected to decline again in 2025. At a recent hospital board meeting, trustees discussed the possibility of suspending obstetrical services; the board did not make a final decision, but hospital leaders said eight of nine trustees supported further action to address the unsustainable financial trajectory.
If obstetrics were discontinued, hospital officials said emergency obstetrical care would still be handled through the emergency department as needed, with plans to provide staff training for acute delivery situations; scheduled prenatal and postnatal care arrangements would be worked out with local providers. Hospital management said it would provide advance notice and transition assistance for patients if the board votes to close the service.
Hospital leaders asked commissioners to remain engaged on capital and operational needs and said they would present options, including capital requests, during the county’s budget process. Oginski invited commissioners to a hospital board retreat on March 31 with a guest speaker from the National Rural Health Association to review rural health trends and potential local strategies.
Provenance: Hospital finance presentation and trustee discussion of obstetrics occurred in the work session portion of the meeting (approximately 10:58–12:12), where Stacy Oginski, Ray (CFO), trustees and board members presented details and took questions from commissioners.
