Hospital trustees warn of deepening deficit; levy, grants and partnership talks underway to avoid service cuts
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Summary
Granite County Medical Hospital trustees told commissioners the hospital carries roughly $1.4–$1.7 million in accounts receivable and a similar‑sized net deficit; trustees outlined billing and operational changes, grant applications and partnership talks and said failure of a proposed levy or other revenue could force service reductions.
David Gordon, a trustee on the Granite County Medical Hospital board and a member of its financial committee, presented a detailed financial update to the county commissioners and said the hospital’s accounts receivable have been reduced from earlier highs but still represent a material liability.
Gordon told commissioners that accounts receivable had been as high as roughly $2 million in the past year and that current AR sits between about $1.4 million and $1.7 million; he said a portion of that reduction reflects a belated Blue Cross payout of more than $200,000. Despite collection improvements, he said the hospital still faces a substantial net deficit (he cited a figure near $1.5 million).
The board has paused capital projects that are not directly related to patient safety and is pursuing multiple revenue and cost‑control measures: improved coding and billing, a charge‑master update that the board estimates could improve collections by $500,000–$600,000, a chronic care management program and negotiations with larger health systems for shared administrative or service arrangements. Gordon said the board is also applying for state and federal grants and exploring an intercap loan.
On local revenue, Gordon told commissioners that a proposed mill levy would add about $200,000 for the upcoming year if passed; conversely, he said the hospital could lose about $400,000 in income if the levy fails. Board members and commissioners explicitly linked the levy to near‑term financial stability: Gordon said that without sustained revenue improvements, service reductions or even closure could not be ruled out.
Commissioners and members of the public asked detailed operational questions. A commissioner and public commenters raised concerns about Medicaid redetermination policies in Montana that take effect in July; hospital staff said budget re‑forecasting in light of Medicaid policy changes is underway. The board also confirmed that the community thrift store funds specific equipment purchases (those donations are not currently recorded as recurring revenue in the hospital operating budget).
Hospital staff said they expect some of the revenue improvements and savings to take up to a year to materialize. They asked the county to consider community support for the levy and noted that some federal rural hospital payments or a change in designation (to a rural emergency hospital) could materially change monthly cash flow, while also altering service and licensing requirements.
The commissioners asked hospital staff to return with updated reports and to keep the county informed of grant and loan outcomes.
