Wiregrass Hospital warns of large FY2025 loss and payer disputes during Geneva County briefing

A Wiregrass Hospital representative updated the Geneva County Commission on Nov. 24 about the hospital’s financial condition and efforts to secure new funding.

Janet Smith told the commission the hospital closed fiscal year 2025 with a $2,400,000 loss, of which about $2,300,000 was uncompensated care for uninsured or underinsured patients. She described the state’s new Rural Hospital Investment Program, effective Jan. 5, 2026, which will let Alabama taxpayers contribute to rural hospitals and receive dollar-for-dollar credits on state taxes; each hospital may receive up to $750,000. Because the hospital is a not-for-profit, Smith said contributions may also qualify for federal charitable deductions.

Smith said the hospital converted to Critical Access Hospital status in March, which increases Medicare reimbursement, and the hospital is seeing improved payer rates in some cases. However, she said UnitedHealthcare has not paid claims since the conversion; the hospital is working with the Alabama Insurance Commission to escalate payment disputes and said that if denials continue, the hospital may be forced to leave United’s network.

Smith also noted the hospital is repurposing a former psychiatric unit into a lockdown mental care unit for the affiliated nursing home. Commissioners listened but did not take formal action during the meeting.

Next steps: hospital staff will continue to press the insurer through the Insurance Commission and explore funding options from the Rural Hospital Investment Program and other sources.