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Dahl Hospital reports stabilizing services, revenue‑cycle work and pilot grants pursuit

Carter County Board of Commissioners · May 13, 2026
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Summary

Dahl Hospital's quarterly report showed service‑line growth in radiology and swing‑bed usage, an ongoing revenue‑cycle recovery, intermittent Medicare adjustments and a plan to pursue rural health transformation funding that could reimburse facilities up to $360,000 for approved initiatives.

Dahl Hospital provided a quarterly operational and financial update to the commissioners, with hospital leadership describing steady service‑line growth alongside remaining financial risks.

Daryl Messersmith, presenting the hospital report, said auditors issued a clean, unqualified audit and that the hospital has seen growth in radiology and outpatient lab services. Swing‑bed services increased about 15–20% year over year, which Messersmith said helps cash flow for a critical access hospital. He said a Medicare takeback late in the year reduced net patient revenue, but the hospital has recently improved collections through revenue‑cycle work and is seeing days of cash on hand recover to roughly 35–40 days (he said a healthy target is about 80–100 days).

Messersmith described service expansions: remote CT coverage has stabilized availability and the hospital signed an agreement to expand that coverage, and a cardiologist is slated to begin on a trial basis for six hours per month at the rural health clinic. He said the hospital is preparing to apply for rural health transformation/Center of Excellence funding (state program language cited in the meeting) that could reimburse up to $360,000 per facility for eligible initiatives such as community paramedicine and care coordination.

Operational items included ongoing facility repairs (roof and interior water intrusion), possible HVAC control work after an energy audit, and work to ensure bids include health‑care‑grade controls to limit dust and noise during construction. Commissioners asked about ambulance asset accounting, and Messersmith and commissioners agreed to examine lease vs. asset treatment further with auditors.

Messersmith said workforce remains a challenge; the hospital seeks local hires first and tries to avoid contract travelers when possible. He also noted the hospital is completing its community health needs assessment and will present a final report after steering‑committee review.