Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Healthcare Finance topic
No spam. Unsubscribe anytime.
Dahl Memorial reports cash-flow squeeze; hospital proposes revenue-cycle fixes and service mix changes
Summary
Hospital representative Daryl told commissioners the hospital faces operating losses and legacy account write-offs that have reduced cash on hand; leadership plans to improve collections (online/text pay), increase swing-bed/inpatient and outpatient volume, and reduce costs to restore margins.
Dahl Memorial hospital representatives briefed the Carter County Commission on Feb. 18 about a near-term cash-flow shortfall and steps being taken to stabilize finances.
Hospital representative Daryl told commissioners the hospital saw operating losses in 2023 and 2024 driven in part by legacy patient-account write-offs and delayed Medicaid payments. Daryl said about $400,000 of the current-year reported loss reflected one-time write-offs of legacy accounts and that the hospital had faced pauses or adjustments in Medicare/Medicaid payments that reduced cash on hand to roughly 25 days of operating cash in hand.
To address the shortfall, hospital leadership described a set of revenue-cycle improvements and service-mix strategies: faster claims submission, expanded online and text payment options for patient balances, more aggressive point-of-care collections, and efforts to increase swing-bed and outpatient volumes (physical therapy, minor procedures, infusion visits, imaging) that are more likely to generate favorable reimbursement mixes. The hospital will invite its cost-reporting consultant (Corey) to present detailed financials at an upcoming meeting.
Daryl characterized recent operational improvements—January and February saw stronger volume and some swing-bed activity—and said the hospital is implementing technology and collection practices expected to raise revenue. He said a rough target to return to sustainable margins would include reducing annual costs by roughly $400,000–$500,000 and increasing revenue by about $800,000, with a portion of that revenue coming from commercial payers and higher-volume outpatient services.
Daryl also noted the hospital has taken steps to control expenses and is pursuing tighter follow-up on large third-party adjustments and legacy accounts. Commissioners asked for a detailed financial presentation from the hospital’s CFO and auditor at a future meeting (March 3) to review the audit, cash-flow, and utility/propane expenditure trends.
