CrossRidge Community Hospital remains more than $500,000 in the red through four months despite the hospital experiencing its highest revenue month ever in January.
Administrator Gary Sparks updated governing board members yesterday on the hospital’s financial situation. Sparks said CrossRidge was showing a loss of $574,000 so far this fiscal year after bringing in nearly $2.67 million in January. Sparks said the loss is almost entirely due to lower reimbursement rates as over the past three years, collections on gross revenue have fallen from about 50 cents on the dollar to around 40 cents. That equates to about a $3 million annual loss.
“Sixty percent of rural hospitals – big or small – are losing money right now nationally,” Sparks said. “We’re just in a difficult environment. The biggest issue with CrossRidge right now is over the last three years, we’ve gone from getting paid about 53 cents on the dollar to about 40 cents on the dollar. That’s a 13 percent difference. Our annual revenue runs about $30 million, so that’s $3.9 million less we’re being reimbursed for relatively the same services just three years ago.”
Sparks said the situation is not unique to CrossRidge, with several hospitals in the state fighting payers – particularly United Healthcare – for reimbursement.
“It’s what’s driving our loss right now,” Sparks noted. “Administrative burdens, pre-authorizations, payment delays, payment denials, forcing inpatients into observation status, which pays about 35 percent of what admitting status pays… That’s what driving our loss right now.”
Many physicians in eastern Arkansas are expected to be out of network with United on March 1. Unless an agreement can be reached, St. Bernards will be out of network on May 1, followed by CrossRidge on Aug. 14.
Individuals currently enrolled in Medicare Advantage have until March 31 to switch their coverage to another carrier, and some group plans may not be affected. Patients out of network can continue to see their regular providers but may be required to pay more out of pocket. Sparks said emergency room visits do not depend on network status.
Chris Barber, president and CEO of St. Bernards, said the negotiations with United have continued for over 16 months, calling the situation unfortunate and unnecessary for the families and patients they serve.
For more information on the situation with United Healthcare, visit www.stbernards.info/patients-visitors/uhc/.
In other news, board members discussed campaign efforts for the renewal vote on the hospital’s one-cent sales tax, and the recent CAP (College of American Pathologists) lab inspection. Sparks said COVID is still an ongoing concern, but has not led to as many hospital admissions. Barber also presented a corporate report, noting St. Bernards is the first in the state to be approved for the Life 360 program. The purpose of the program is to improve infant mortality rates in Arkansas and would provide both pre-natal and post-partum care for mothers.
