Difficult collections force struggling Calif. hospital to revise revenue projections

Sebastopol, Calif.- based Sonoma West Medical Center has reduced its projected revenue forecasts as the hospital struggles to collect payment from patients and suffers large operational losses, reports Press Democrat.

The hospital is expected to report an operating loss of more than $600,000 for April. That's compared to  an operating loss of $47,000 in March and $400,000 in February.

Hospital executives are also taking a more conservative approach to payer reimbursement and patient collections. Specifically, the hospital has reduced the amount it expects to collect from patients from one-third of gross charges to 29 percent of patient charges.

In its first six months as a licensed hospital, Sonoma West has amassed operating losses of $1.43 million. To get hospital financials back on track, Sonoma West will launch initiatives aimed at increasing gross revenue and improving patient collection efforts, hospital CEO Ray Hino told Press Democrat.

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