Pratt (Kan.) Regional Medical Center has requested aid from Pratt County commissioners amid financial challenges, KWCH reported Nov. 18.
In early November, PRMC offered three options to the commissioners, including an extension of current sales tax for bond repayment, an $8 million donation without payback or a $15 million county-backed loan.
PRMC has boosted its operation margin by 9% over the last year, reaching the state average of negative 7%. However, the hospital requires significant actions to make further progress.
PRMC pointed to challenges like a 400% increase in anesthesia service costs, a nearly five times increase in radiology services this year compared to others, a 36% increase in medical supplies and drugs and a 34% increase in personnel costs.
“No. 1, we need $15 million for this option to be viable,” Tammy Smith, CEO of PRMC, told KWCH. “Our ability to borrow the necessary funds is limited due to the lack of collateral. Guaranteed lending services reports they believe funding through the [U.S. Department of Agriculture] would be available if the county would back PRMC.”
However, in a recent meeting, Pratt County commissioners said the county does not have the kind of money to provide PRMC with a donation or gift. Should none of the three suggested options be accepted by the county, the hospital would then consider seeking bankruptcy or merging with a larger health system.
A spokesperson for PRMC confirmed with Becker’s the accuracy of KWCH’s reporting.
