Edition 24
Regional Planning:
Early this week, we had representatives from the Rural Health Redesign Center visit our campus as part of their tour of the county facilities. They have been engaged to facilitate a project in the county to explore options for the three hospitals to work together. This effort pre-dates the Medicaid reimbursement cuts, but given the upcoming Medicaid cuts we are approaching this work with more urgency in identifying how to improve care and sustainability of the three hospitals. The scope of the project is very open ended but we hope to find some solutions that help every hospital.
Medicaid Cuts:
Speaking of Medicaid cuts, any news there? Not too much. I spoke at a panel a few weeks ago about the expected impacts (video here if you are interested) and we are preparing feedback for the Healthcare Authority as they seek to apply for Washington state’s portion of the $50 billion Rural Health Transformation Program. The reconciliation bill that created this fund did not provide many details about how the funds should be used, but as the process continues we will see what we might be able to apply for.
We are also tracking the recent media reports about the August 15th letter from the Congressional Budget Office about potential sequestration. Unless new legislation waives the requirement or otherwise reduces the Federal deficit the CBO is anticipating the Office of Management and Budget would be required to reduce Medicare payments as part of the Pay-As-You-Go Act.
As a critical access hospital we are paid 101% of our costs to care for Medicare patients, but for the last decade that has been reduced by 2% because of sequestration, meaning we only receive 99% of our costs. Unless congress takes further action we may have our Medicare payments reduced further.
Financial Update:
We have continued to make progress on our revenue cycle catch up with Cerner. Our cost containment efforts and high volumes in June and July helped drive strong months, which in combination with a few one-off cash payments has allowed us to rebuild some of our depleted savings. Our cash on hand has improved to 40 days, and we hope to keep up the momentum. It isn’t always easy to see the impact on our viability that small day to day decisions make, but I’m encouraged by our progress. I also recognize we are asking everyone to do more with less, and I am so appreciative of everyone’s efforts.
Other Reminders:
Planned power outage tonight between 9pm-10pm
School Supply Drive is ongoing
Upcoming Community Events:
Tiger Tailgate - Tue 9/2
Oroville Farmer’s Market-Health Fair - Sat 9/20
NVH Fall Event @ CCC - Tue. 9/23
Get outside before winter hits!
