Bartlett Regional Hospital lost on average $1.4 million per month over the past six months. The hospital’s leaders will need to make significant changes in order to end the losses for the first time ever.
Although there haven’t been any layoffs, they are not ruled out.
span style=”font weight: 400 We haven’t fired anyone,” stated Sam Muse, Chief Financial Officer at the hospital. Muse joined the hospital in this fall. This is Muse’s first week as Chief Financial Officer. “The hope is we can figure it out so that we’re moving people around and finding solutions for each home base staff .”
He stated that the hospital must retain its staff because of the national labor shortage.
Since the summer 2020, the hospital has been losing $1 million per month. However, temporary federal pandemic relief funding helped to mask the problem. In 2020, 2021, and 2022, the hospital received $12 million and $6 million respectively.
Muse stated that inflation and rising labor costs are the main causes of the losses. While hospital costs are increasing, the amount paid by Medicare and Medicaid isn’t keeping pace with inflation.
Muse stated that it was an issue all US healthcare systems, and Alaska’s, are currently trying to address.
Other effects include a lower level of medical care in the communityspan styling=”font-weight 400 ;”>. Wildflower Court nursing home was unable to meet its full capacity. In fact, they had to close one wing in 2021. Because there weren’t enough staff, Catholic Community Services shut down its home care and hospice programs in September.
This means that some patients may not be able to leave the hospital. Hospital stays that are longer than expected are not covered by insurance.
Muse stated that they provide this care because the community requires it. “We are trying to fill in the gaps, but we don’t get reimbursed .”
Bartlett has developed a plan that will gradually start saving money. It has already implemented two of the three phases. It aims to start the next fiscal year in June without running into a deficit.
These actions include overtime reductions and hiring restrictions. Incentives are being cut at the hospital, as well as reducing travel and contract employees. Retirement incentives are also offered.
The hospital could have to implement the third stage of its savings plan by March 31, which will include cutting programs and reducing staff.
The hospital’s financial committee stated that it would recommend to the board the plan to cut costs at the hospital.
span style=”font weight: 400 This is not going to affect any type of clinical staff reduction or increase in staff,” stated Kenny Solomon-Gross, Board President at the meeting. Bartlett doesn’t want to see any reductions in staff or layoffs. It is possible that we will have to retrain employees in other areas and then move them to areas where they are needed span>
Muse confirms that Bartlett has cash on hand. Hospitals like to have enough cash to keep them open for six to nine more months. Bartlett has approximately $42 million in cash and is able to operate for seven months.
