The number is cited in a March 4 letter from the North Dakota Hospital Association to the North Dakota Department of Human Services.
In the letter, the hospital association spoke out against the Medicaid cuts, saying the loss will remove approximately $7.3 million in salaries and benefits in the health system, resulting in the need to reduce workforce by about 125, according to the report. The letter also noted that necessary capital spending would be reduced by about $5 million.
However, Dwight Thompson, Altru’s CFO, noted the figures included in the letter represented a “worst-case” scenario.
“I think the (hospital association) is trying to find a way to help the department hit their budget objectives and looking at alternative ways of doing it other than what they’ve proposed,” Mr. Thompson said, according to Prairie Business. “But there’s been no decision on that that I’m aware of.”
The letter was sent after North Dakota Gov. Jack Dalrymple (R) ordered a 4.05 percent budget cut in February to help fill a budget shortfall of nearly $1.1 billion, according to the report. The state’s DHS was required to cut its general fund budget by almost $54 million.
More articles on finance and revenue cycle management:
athenahealth shares downgraded to ‘hold’ rating: 4 quick facts
Madision Dearborn positions itself for buyer’s market: 4 things to know
Saint Thomas Health relaunches heart transplant program: 5 things to know
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.