Tim Reeves, CEO of Renevo, Pa.-based Bucktail Medical Center, is sounding the alarm on the hospital's rapidly deteriorating financial situation, The Express reported Aug. 28.
The CEO of the critical access hospital is concerned that it might not be able to meet payroll. According to Mr. Reeves, the facility lost $150,000 per month in 2022.
The hospital has $32,000 in the bank and will need $193,000 to meet the Sept. 8 payroll and tax deadline, according to Penn Live.
Mr. Reeves sent a letter to local government officials requesting their help in ensuring that the facility stays open. The CEO says that its critical access status, which is designed to increase federal reimbursement funds, is not enough to cover costs.
"Medicare claims to reimburse us, as a critical access hospital (CAH), at 101 percent of our cost for inpatient and some other services, except, Medicare Sequestration cuts Medicare payments 2 percent annually, soon to be 3 percent," Mr. Reeves said. "And our Medicaid Cost Report was cut nearly in half by $300,000. These do not cover our costs."