The hospital will have to withdraw from its savings to cover a projected $7.5 million budget deficit for the next fiscal year, according to the report.
“We have three years of cash left from today before we’re closing the doors, essentially,” Max Mertz, chair of the hospital board’s finance committee, said during a May 29 meeting with the Juneau Assembly. “We’re not able to make payroll without a significant adjustment to the way that we’re operating.”
Increased labor costs, diminishing reimbursement rates, and staff and leadership turnover have hit the hospital hard.
Bartlett Regional aims to extend the contract of interim CEO Ian Worden through the end of 2024 amid a search for its fourth leader in less than a year.
Pandemic relief funds from the federal government had masked the problem, but the board is now considering cutting or reducing services to shore up its finances.
Bartlett Regional’s recovery and crisis services, support for children with autism, and home health and hospice care are expected to lose a combined $1.3 million next fiscal year and are at risk of being significantly scaled back or cut.
“We’re left with very stark choices about how we want to move forward,” Mr. Mertz said, according to KTOO. “We don’t have time to kick the can down the road.”
The hospital’s board said it is seeking public comment on community healthcare priorities and non-core hospital programs. Community feedback forums are taking place June 4 and June 10.
The board will review community feedback and make recommendations on non-core programs at its June 25 meeting.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
