Hospital leaders tell Granite County commission cash shortfall, propose doubling mill levy

Brian Husell, CEO of the hospital district, told the Granite County Commission on Feb. 3 that the district is operating with a negative cash balance and needs near-term financial relief to continue inpatient and emergency services. “We’re in the negative in the cash account,” Husell said, and described roughly $2,400,000 in accounts receivable the hospital has billed and is attempting to collect.

Husell said the hospital board has approved a resolution asking voters to increase the district’s annual mill levy from $400,000 to $800,000 and that the board could modify that request through Feb. 9 if desired. “The board was adamant to 800,000,” Husell said, adding that the hospital’s low patient volumes and shortfalls in payer collections—particularly self-pay and delayed Medicaid/insurer payments—have driven the financial distress.

Why it matters: the hospital reported that swing-bed revenue is essential to its margin; Husell said increasing swing-bed days modestly would materially improve cash flow and that three additional swing-bed months could resolve the shortfall. He also flagged that accounts receivable composition includes sizable Medicare Advantage and self-pay balances and that unpaid claims to commercial carriers remain a pressing problem.

The hospital has engaged an outside consulting team for an organizational and financial assessment; Husell said the consultants expect to deliver a report by mid-February and the board will consider implementation recommendations. Husell told the commission the board and hospital leadership will pursue multiple options—line-of-credit, loans, donations or guarantees—to keep operations running while the corrective plan is executed.

Commissioners pressed for details on timing and contingency plans if a levy fails. County Treasurer Ashley Todd clarified statutory deadlines and election timing the hospital must meet to change a levy and said the board may elect different election dates; staff and commissioners discussed the possibility of a second election if a May measure failed. Husell said many changes would be painful but that the hospital is also pursuing expense reductions and revenue-capture efforts, including working with insurers and collection agencies.

Next steps: Husell asked for the county’s continued cooperation and said the board will pursue both the consultant recommendations and outreach to potential lenders or guarantors. The commission did not take formal action on funding at the Feb. 3 meeting; it requested more precise timelines and documentation from the hospital and noted the Feb. 9 deadline for changes to the proposed mill-levy amount for a May election.