Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Healthcare topic
No spam. Unsubscribe anytime.
Southwest Health System reports operating losses, plans microgrid, CT replacement and local cardiology hires
Summary
Southwest Health System told county commissioners it has run a roughly $1.5–$1.6 million operating loss in the first four months of the year, holds about $1.4 million of unrestricted cash (about seven days), and expects federal and state grants to fund a CT replacement, battery storage microgrid and ambulance replacement; two cardiology providers are expected to be based locally later this year.
Mr. Thine, speaking for Southwest Health System, presented an extended update on governance, finances and capital projects.
He said the hospital recently restated its bylaws to allow a maximum board size increase from seven to nine members and will open a nominating process this summer. On operations, he reported a sustained operating loss in early 2026: "The first four months of this year we've now sustained a little over a $1.5 million $1.6 million loss from operations," Mr. Thine said.
He underscored cash constraints: "If they were all to come due today, we would only have about $1.4 million of unrestricted cash, which is about 7 days," Mr. Thine told the commissioners, adding that the board seeks a minimum operating cushion of five days.
Mr. Thine described service expansions and capital projects: Montrose Health has signed two providers who indicated intent to live and work full-time in Cortez, which the hospital expects will add outpatient cardiology capacity later this year. Oncology treatments delivered locally have increased substantially, and SHS unified inpatient and outpatient electronic health records to improve continuity of care.
On capital finances, Mr. Thine said congressionally directed funds and a non-competitive HRSA grant will allow replacement of CT and some nuclear medicine equipment; Congressman Hurd also requested assistance to replace the ambulance fleet in future budget cycles. The hospital district secured two grants to store energy on site—a $1.6 million Department of Energy award passed through DOLA plus $680,000 in state/local matching funds—and the system is designing battery storage (microgrid) to run in parallel with its diesel generator. Early estimates show electricity savings of roughly $120,000 per year once installed.
Why it matters: the hospital provides emergency and specialty services in a rural region; operating losses and low unrestricted cash could affect staffing, service capacity and capital planning. Planned grants and a microgrid aim to harden operations and reduce long-term operating costs.
Commissioners asked about board recruitment, battery technology and days of autonomy the storage will provide; Mr. Thine said the design aims to power most non-emergency hospital functions for multiple days but not necessarily four full days for the entire facility.
Next steps: SHS will complete grant paperwork and continue design work on the battery project; commissioners offered support for federal funding requests.
