Powell (Wyo.) Valley Healthcare plans to end oncology services and close its internal medicine clinic in Cody within the next two to three months, the Buffalo Bulletin reported Sept. 30.
Seven employees will be laid off as part of the oncology service closure, but infusion services will continue at the hospital. Powell Valley said the move is necessary to remain financially stable and continue offering its other services.
The hospital has struggled for years to maintain adequate cash reserves and currently has 21 days of cash on hand, according to the report.
“The industry minimum threshold days [cash on hand] for operational stability is 45, and truly viable hospitals have 90 plus,” Interim CEO Sean McCallister told the publication. “Our challenge is that our cash reserves have been static at around 20 days for a prolonged period.”
Leadership turnover has also affected the organization. Former CEO Joy Coulston and former CFO Coby LaBlue both left their roles in May, with Mr. McCallister stepping in as interim CEO shortly afterwards.
“We have too many negative margin services,” Mr. McCallister told the Buffalo Bulletin. “We have an aggressive plan to increase efficiency, reduce expenses and capture more revenue, but sustained income statement and balance sheet improvements will take time.”
Becker’s has reached out to Powell Valley Healthcare and will update this story as more information becomes available.
