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Consultants warn Granite County Medical Center needs fast turnaround; commissioners ask for a written plan and milestones
Summary
Consultants told commissioners the hospital faces negative monthly cash flow and recommended three priorities (cash flow, organizational redeployment to maximize reimbursement, and HR improvements). The hospital reported gross accounts receivable near $2.3M (collectible ~ $1.6–1.7M); commissioners requested a written plan with milestones within 30–45 days and monthly accountability reports.
Consultants from Critical Access Hospital Solutions presented a comprehensive assessment of Granite County Medical Center on Feb. 24, telling commissioners the facility is in a negative cash-flow position and needs immediate management and structural steps to stabilize operations.
Key findings: Consultants Steve McNes and Laura Austin identified three near-term priorities: (1) remedying negative monthly cash flow through both short-term liquidity measures and longer-term reimbursement improvements; (2) reorganizing staffing and department assignments to better capture Medicare/Medicaid reimbursement by aligning employee time to reimbursable departments; and (3) strengthening human-resources policies so staffing and scheduling are sustainable and compliant. The consultants noted that several large insurance claims account for a large share of outstanding accounts receivable.
Financial specifics shared in the meeting: The consultants reported gross accounts receivable of approximately $2.3 million and estimated that roughly $1.6–$1.7 million of the AR appears collectible after allowances and bad-debt considerations. Consultants said that a small number of large claims represent a disproportionate share of outstanding receivable dollars and that clearing or resolving those claims would substantially reduce AR and improve short-term liquidity.
Board and commission response: Commissioners expressed strong support for keeping the hospital open but emphasized the need for a written, dated remediation plan and regular public accountability. Commissioners asked hospital leadership and the consultants to provide a draft plan (with concrete milestones) within about 30–45 days and to return with monthly accountability reports that clearly identify targets and whether the facility met them. County staff and hospital leaders discussed options for temporary liquidity and noted the county’s prior practice of short-term support while the hospital pursues longer-term grants and loan programs.
Other notable items: Hospital CEO Brian announced a planned retirement at the end of May; the board said it will proceed with a recruitment and implementation plan while continuing consultant support. Consultants said they will help implement changes after the board approves an operational plan; commissioners asked for frequent updates and asked staff to coordinate any county financial support tied to explicit milestones.
Next steps: Consultants and hospital leadership will produce a written turnaround plan with milestones and cash-flow projections and will meet with county staff to work out any short-term liquidity measures and reporting requirements. Commissioners requested the plan return to the commission in roughly 30–45 days for review.
