The weak financial reporting controls were attributed to the medical center’s lack of a CFO for most of 2016, which caused normal checks and balances to be absent, according to the report.
The medical center’s recently appointed CFO Tim Cashman intends to address the issues found in the audit in his new role.
Additionally, the hospital’s net income will be decreased by $1.8 million for 2016 due to write-offs from Medicare, Medicaid, self-pay, charity care and bad debt, according to the report.
“Very seldom do we get paid in full for what we bill,” Mr. Cashman said in an email to the Trail Gazette. “The adjustments for the year were 47 percent. The hospital wrote off $35,031,712 [in total] due to these shortfalls.”
The Park Hospital District board of directors unanimously accepted the audit report.
More articles on healthcare finance:
Municipal hospital bonds see gains as ACA repeal lags
Vendors threaten to cut off Illinois critical access hospital as budget impasse continues
6 largest gifts from individuals to healthcare organizations in 2017
