Missouri hospital's finances dragged by unpaid patient debt

Kelly Gooch - Print  | 

Salem (Mo.) Memorial District Hospital's backlog of uncollected patient debt put a damper on its financial picture in fiscal year 2019, according to local news source thesalemnewsonline.com, which cites a recent audit.

The audit, issued by BKD CPAs & Advisors, showed the 25-bed critical access hospital saw 511 more admissions in fiscal year 2019 compared to the year prior, leading to year-over-year revenue growth of $2.9 million, according to the report. However, unpaid medical debt offset the hospital's financial success.

Jean Nyberg, a partner with BKD CPAs & Advisors, told the hospital board earlier this month the audit showed accounts receivable grew about $2.9 million in fiscal 2019 compared to fiscal 2018, and gross receivables climbed year over year to $11.2 million. 

To improve financially, auditors recommended adding accounting staff to address revenue cycle and accounts payable issues as well as developing a prior approval policy for large credit card purchases. Auditors also recommended rechecking inventory pricing.

 

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