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Wiregrass Hospital reports $2.4M FY2025 loss, warns of UnitedHealthcare claim denials
Summary
Wiregrass Hospital told Geneva County commissioners it closed FY2025 with a $2.4 million loss (about $2.3M from uncompensated care), outlined a new Rural Hospital Investment Program, and said UnitedHealthcare has not paid claims since the hospital converted to critical access status.
Janet Smith, a representative of Wiregrass Hospital, updated the Geneva County Commission on Nov. 24 about the hospital's finances and recent operational changes.
Smith said the hospital closed out fiscal year 2025 with a $2,400,000 loss, of which approximately $2,300,000 was attributable to uncompensated care (patients without adequate insurance). She described the new state Rural Hospital Investment Program, effective Jan. 5, 2026, which allows Alabama taxpayers to contribute to participating rural hospitals and claim a dollar-for-dollar Alabama tax credit; each hospital may receive up to $750,000. Smith said the hospital operates as a not-for-profit, so contributions may also be deductible for federal taxes.
The hospital converted to Critical Access Hospital status in March, which increases Medicare reimbursements and has raised payer reimbursements in some cases. However, Smith said UnitedHealthcare has not paid the hospital since that conversion. "If United Healthcare continues to deny all claims the hospital will have no choice but to come out of the network for United Healthcare," she said, adding the hospital is escalating the issue with the Insurance Commission.
Smith also reported that the facility is converting its former psychiatric unit into a lockdown mental care unit for the nursing home.
Why it matters: the hospital's losses and insurer-payment dispute affect access to local care and county residents who rely on the hospital. County commissioners heard options staff are pursuing but did not vote on any funding at the meeting.
What happens next: hospital leadership will continue to pursue a resolution with UnitedHealthcare and promote the Rural Hospital Investment Program to potential donors.
