CEO says Missouri hospital has raised half of $3M tax bill

The CEO of Fulton (Mo.) Medical Center said he is optimistic about the future of the hospital and its ability to pay back $3 million it owes the IRS, according to TV station KRCG.

The debt has been a significant financial barrier for Fulton Medical Center, which is owned by Leawood, Kan.-based NueHealth.

CEO Mike Reece told the station the hospital has already raised half of the money.

"We are turning a profit and we broke a record in billing during September 2019. We should be at $20 (million) to $30 million in revenue within 12 to 24 months," he added.

Mr. Reece told KRCG hiring new physicians  is also a step toward improving the hospital's finances.  

Fulton Medical Center must pay off their $3 million tax bill by year's end to remain open, the station reported, noting the IRS has the option of granting an extension.

The hospital was facing closure in September 2017, but Kansas City, Mo.-based EmpowerHMS entered into an agreement with NueHealth to manage the hospital shortly before the hospital was supposed to shutter. That agreement ended this year when financially challenged EmpowerHMS was removed as the hospital's operator.

Ayla Ellison contributed to this report.


More articles on healthcare finance: 

Federal surprise-billing legislation will likely pass Congress by end of year, US senator says
Rural hospital execs in Georgia must finish finance classes by end of 2020
Prior authorizations top list of gripes in survey of medical practices



Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars