Kansas hospital abruptly closes

Oswego (Kan.) Community Hospital and its two affiliated clinics closed Feb. 14.

Advertisement

The critical access hospital, owned by Kansas City, Mo.-based EmpowerHMS, said in a Facebook post that the abrupt closure was due to “unforeseen circumstances.” A statement from the board announcing the closure said the hospital wasn’t bringing in enough revenue to cover payroll and other expenses, according to The Garden City Telegram.

Officials said Oswego Community Hospital was facing the same challenges as other rural hospitals across the nation.

“At Oswego, we have weathered low patient volumes; high number of uninsured patients; low reimbursement rates; difficulty in getting payment from private insurance providers; low Medicaid and Medicare rates; and the state’s refusal to expand Medicaid,” the prepared statement said, according to the report. “The trickle of low revenue stream we have generated has not been enough to cover payroll, let alone to meet all of the other costly expenses needed to operate and maintain a hospital.”

Other hospitals owned by EmpowerHMS have reported financial challenges in recent months. Most recently, the company failed to pay staff at Washington County Hospital in Plymouth, N.C., on Feb. 8.

More articles on healthcare finance:

Indiana hospital overbilled Medicare by $22M, OIG says
Oklahoma hospital’s Medicare funding at risk after state rejects correction plan
Tower Health points to Epic install costs for operating loss

 

 

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.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.