Employees at Copper Basin Medical Center are going about the business of providing health care and improving the financial picture despite the controversy swirling around the future management of the 25-bed facility.
Employees at Copper Basin Medical Center are going about the business of providing health care and improving the financial picture despite the controversy swirling around the future management of the 25-bed facility. However, “business as usual” is difficult for employees who keep hearing that the doors of the facility will close.
Asked if the hospital is in jeopardy of immediate closing, acting administrator David Hyatt said, “No, not unless physicians stop admitting patients and we don’t have any more revenue.” He added, however, that the hospital is not out of the woods and working capital is needed.
Hyatt also pointed out that the hospital cannot legally close its doors without state permission. A new provision of state law states that a Critical Access Hospital cannot be closed without a Certificate of Need explaining the need for the change. CBMC is a Critical Access Hospital. A Certificate of Need, also required for new facilities, is issued by the state following public notifications and review of the application.
Hyatt said his main focus right now is to maintain a high level of patient safety while working to stabilize the financial situation. He said there is a good administrative team in place rolling up their sleeves to do everything possible. He said there was a time when the hospital was growing too fast, purchasing new equipment and taking other steps that led to a deficit. He noted he hopes to finish this fiscal year at the break-even point.
Opening the operating room for outpatient surgery is closer to reality, he said, explaining that funds they spent in December 2007 to lease some equipment were recently approved to be used as a match for a grant. That means they will be able to get enough of the needed grant money to purchase the additional equipment needed.
Another grant is close to being awarded that can be used to match available funds for a digital radiology system, Hyatt said.
The key problem is the past due accounts, and progress is being made on them, although there is still a significant amount remaining. Hyatt said they have reduced the total by around $500,000 in the past five months and most accounts with major suppliers are only 60 days past due, with many at 30 days. He said they have a payment plan with IRS to pay up past due payroll taxes and will have employee health insurance claims paid off by November.
Felicia Deal, who was brought on a few months ago to work on the financial picture, said they have implemented a variety of procedures to help pay off bills and to collect payments and insurance reimbursements. She said they began by looking at existing procedures and correcting problems in order to improve the time required to get payments in. “We’re working as a team,” she said, noting admissions personnel and others are being trained to avoid errors that could cause insurance companies to deny claims. “It’s one step at a time,” she said, noting it takes 30-45 days for a correction to kick in. Then they reassess and will develop new procedures if problems are identified.
She said the business department has additional staff to make sure the job is done properly and followed up. A collection agency is also helping with collection efforts.
As payments come in more quickly, and the patient load increases, that means there is more money available to pay off some of the past due bills, she said.
Deal, as with all the employees, is well aware of the efforts by the hospital district. “Whatever happens, happens,”she said. “I’m just doing my job. I was born in this hospital and I would like to see it excel.”