Mad River Community Hospital in Arcata, Calif., is tackling rural healthcare challenges head-on through a partnership with Ovation Healthcare to help improve certain revenue cycle functions.
Matt Anderson, COO of the hospital, said approximately 30 employees will be part of this ‘”insourcing” partnership as the hospital works to navigate anticipated Medicaid cuts.
“I’ll be very candid, rural healthcare is under attack,” he said. “You look at some of these Medicaid cuts in rural communities, and it already makes things much more difficult for us. As administrators, [we] are put in a very difficult position, where oftentimes some very difficult decisions have to be made to ensure that we can continue to deliver service to our communities.”
Under the partnership, hospital employees will support operations through “an updated employment structure designed to provide expanded operational resources and specialized expertise,” according to a May 21 statement shared with Becker’s.
Mr. Anderson confirmed that Mad River laid off around eight to 10 employees in March to help right-size staff and ensure long-term sustainability. He reiterated that no services at the hospital have been cut.
Despite industry challenges, Mr. Anderson said Mad River is also looking to grow key services that the community needs. The hospital has invested in a behavioral health and crisis stabilization center that will kick off in early 2027.
“It’s not just about reducing or cutting, it’s about growing and sustaining,” he said. “We want to make sure we’re here for our community, and we’re doing a lot of great work to do that … we’ve been here over 50 years, and our plan is to do the things that we need to do to ensure we can be here for 50 more.”
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