Pennsylvania hospital CEO blames lagging reimbursement for payroll problems

Ellwood City (Pa.) Medical Center CEO Beverly Annarumo said unpaid accounts are the root cause of disruptions to payroll at the hospital, according to the Ellwood City Ledger.

Since August, hospital employees have reported 15 incidents of paychecks being delayed or receiving minimum wage for their hours worked. In a discussion with concerned citizens on social media, Ms. Annarumo said the payroll issues are due to delayed payments from insurance companies, according to the report.

She said insurers owe the hospital roughly $9 million.

"This is a collective total of money owed for services we have provided, resources we used to provide care for patients in need that we now have to fight the insurance companies for. It's a travesty that should not be occurring," she said.

The hospital, owned and managed by Fort Lauderdale, Fla.-based Americore Health, is the subject of federal and state investigations because of the payroll problems.

Access the full Ellwood City Ledger article here.

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