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South Lincoln Medical Center reports $10.5 million in accounts receivable; county and consultant raise billing concerns
Summary
Hospital CEO Karl Sundberg told the commissioners that South Lincoln Medical Center is carrying roughly $10.5 million in accounts receivable tied to recent construction and system changes; county staff and a health insurance consultant raised concerns about incorrect and double billings and requested follow-up meetings to resolve group-billing issues.
Karl Sundberg, chief executive officer of South Lincoln Medical Center, briefed the Board of Lincoln County Commissioners on April 6 about operational challenges tied to COVID-19, construction-related disruption and billing-system changes. Sundberg reported the facility was carrying about $10.5 million in accounts receivable and said he is working to rebuild the billing team with a goal of a zero bottom-line operating margin.
County Clerk April Brunski and Toni Bates from the Clerk’s Office raised continuing concerns about monthly group-billing errors and incorrect billings originating from the hospital’s walk-in clinic. Sundberg agreed to set up a meeting between hospital billing staff and the Clerk’s Office to address those issues.
Dennis McCormack, the county’s health insurance consultant, separately told the board he is concerned about apparent double billing from the hospital district and offered suggestions for the county’s group-billing procedures; he also presented a quarterly analysis and a large-claimant report for the county health insurance plan and answered commissioner questions about claims-negotiation fees.
Why it matters: Large accounts receivable and billing errors can strain both the hospital’s cash flow and county insurance funds. The minutes record both the hospital’s claim about outstanding receivables and county staff concerns about double-billing; follow-up meetings were pledged in the record but no resolution is recorded at this meeting.
Next steps: Sundberg will convene his billing staff with the Clerk’s Office; the county will review the quarterly analysis and claimant report presented by McCormack. The minutes do not record a timetable for the meetings or a formal remedial plan.
