The state owes the hospital more than $2 million in Medicaid and employee health insurance reimbursements, causing serious funding deficits. Without the state funds, payments to supply vendors lag as the hospital prioritizes payroll, according to the report.
“I probably get one demand letter a week from my vendors saying they’re going to cut us off if we don’t pay out or get caught up to a certain degree,” Jim Johnson, Franklin Hospital CEO and CFO, told WPSD.
The hospital has reduced staff hours and made budget cuts to temporarily offset the lack of state funding; however, the hospital needs the reimbursement it is owed to retain normal operations and increase the supply stock, according to the report.
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