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Eureka Springs Hospital reports $3.4M operating loss for 2025; leaders outline Oracle rebuild and payer recovery steps
Summary
Interim CFO Doug Holman presented preliminary, restructured December 2025 financials showing roughly $5.1M in operating revenue, $8.3M in expenses and a $3.4M net loss; leadership described a multi-month Oracle rebuild and ongoing payer settlement negotiations dating to January 2024.
Doug Holman, the hospital’s interim chief financial officer, told the commission on May 18 that preliminary and internally finalized December 2025 financial statements show total operating net revenue of about $5.1 million, total operating expenses of roughly $8.3 million and a preliminary net loss from operations of about $3.4 million.
Holman described the work required to reach those figures as extensive, citing historical posting inconsistencies, revenue-cycle configuration failures and vendor liabilities that required reconstruction and reconciliation after a leadership transition. "Because of this ongoing work, portions of the current financial reporting should continue to be considered preliminary, unaudited, and subject to ongoing review," he said.
Holman said Oracle (and partner MultiView) has committed to an on-site engagement within about 30 days to begin rebuilding revenue-cycle configurations and workflows. "They gave an estimate of approximately 6 to 9 months before a full operational recovery state is completed," Holman said, adding that manual oversight will remain necessary while systems are rebuilt.
Meeks and Holman described active payer-recovery work tied to a designation change from Critical Access Hospital to Rural Emergency Hospital. Meeks said a payer acknowledged an error dating to January 2024 and is expected to settle the outstanding issue for the January 2024–July 31, 2025 period, though she and Holman did not specify an amount. Holman noted the auditors and management will determine how any collections might be reflected in audited financial statements.
Holman also said leadership discovered an archival services contract entered in February 2025 that included service levels the hospital did not operationally require, with costs exceeding $25,000 per month; leadership is pursuing strategies to preserve required archival access while reducing unnecessary spending.
On audit and compliance, Holman said the hospital received a preliminary Medicare cost report finding and that, because of the REH classification, no settlement is currently due in Arkansas; he said the Medicare cost report and audit processes remain priorities with deadlines and ongoing auditor engagement.
Holman gave a brief balance-sheet overview: cash and equivalents approximately $4 million, total assets about $8.95 million and total liabilities about $7.7 million. Leadership emphasized next steps: Oracle onsite engagement, continued vendor reconciliation and formal audit presentations expected in the coming weeks.
