Case Studies

A Turnaround Story: Southwest Health System

The Situation

When the Southwest Health System (SHS), in Cortez, Colorado, contacted Community Hospital Corporation (CHC) early in 2018, the hospital had violated various bond covenants associated with its $30 million expansion and renovation project. In fact, the organization had failed to meet the 80 days-cash-on-hand requirements for four consecutive quarters. This violation triggered technical default, which could have led to hospital bankruptcy
and closure.

Lenders concerned with the financial situation communicated with the board directly and required an outside consulting firm to evaluate the situation and develop a...


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Blog

Overseeing Without Overstepping: The Board’s Role in Hospital Operations

To what degree should boards be involved in the finances and operations of their hospitals? This is an important question, because effective hospital boards are clear on their roles and responsibilities. That role is hospital governance while management is the responsibility of the hospital leadership team. That means board members must focus on strategy and leave operations to hospital leadership. Yet, it’s not only appropriate but also imperative that board members understand the finances and operations of their hospital.

That means board members must discern the financial situation; education about...


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News Room

The Future of Rural Hospitals

How to remain relevant and sustainable by meeting challenges with change by Jim Kendrick, President & CEO, Community Hospital Corporation

At rural hospitals coast to coast, business practices that hospital leaders once counted on as tried-and-true are uncertain or unreliable. Today, a renaissance of fresh approaches and change is occurring. Since the landscape is so different for rural hospitals today, it’s time to consider innovative ways to serve communities. In this interview, Jim Kendrick, president and CEO of Community Hospital Corporation, urges rural hospital leaders to rethink community healthcare. His...


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White Paper

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Blog

5 Ways Rural Hospitals Are Beating the Odds

Rural hospitals are critical to the communities they serve, but in many areas their role is changing. Demographics tell the story. Patients tend to be older, and many are uninsured. Populations are declining. The decreases result in fewer inpatient admissions, but they have not reduced the need for emergency care or primary care physicians. The U.S. Census Bureau reports that 20% of the U.S. population is rural, but only 12% of primary care physicians are working in rural areas — and their numbers per capita are declining.

All of these...


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Press Releases

Community Hospital Consulting Helps Hospitals Reduce Credit Card Processing Fees

PLANO, Texas, May 7, 2019 /PRNewswire/ — Every dollar captured contributes favorably to the bottom line, especially important for rural hospitals facing thinning margins, declining profitability and higher fixed costs. That’s where credible, credit card processing comes in.

The need to do more with less in a competitive healthcare economy cannot be overstated, as rural hospitals seek innovative ways to reduce costs.

A free savings analysis is available at: https://www.unifiedbusiness.com/.

“Community and rural hospitals may be taking their current credit card processing system and statements at face value by accepting...


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News Room

Hospital Financial Stress Indicators

Like dashboard warning lights, certain signs mean it’s time for a tune-up or overhaul by Jim Kendrick, President & CEO, Community Hospital Corporation

Unfortunately, thin margins have long been a reality for most rural hospitals, but a worsening array of issues—from decreasing reimbursements to declining populations—have forced growing numbers of them into financial distress. By monitoring indicators, creating transparency and responding swiftly to warning signals, financially stressed or distressed hospitals can get turned around before bankruptcy or closure become imminent threats. In this interview, Jim Kendrick, president and CEO of...


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News Room

Hospital Financial Stress Indicators

Unfortunately, thin margins have long been a reality for most rural hospitals, but a worsening array of issues—from decreasing reimbursements to declining populations—have forced growing numbers of them into financial distress. By monitoring indicators, creating transparency and responding swiftly to warning signals, financially stressed or distressed hospitals can get turned around before bankruptcy or closure become imminent threats. In this interview, Jim Kendrick, president and CEO of Community Hospital Corporation, discusses best practices for diagnosis and prevention of financial woes. His insights come from years of experience as a community...


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Blog

How to Improve Rural Healthcare Delivery

Rural and community hospitals are in a unique position to meet the healthcare needs of the communities they serve. They are also especially vulnerable to the types of challenges that significantly impact operations and long-term financial viability. To maintain or regain a position of strength, here are some tips for improving access to care and delivery of services.

Cater to Market Needs

Use market demographics and payer mix data to drive a strategic approach to new services and program offerings. These market-specific ideas have worked for CHC client hospitals:

Yoakum...

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News Room

Southwest Memorial financial recovery is on track

‘Not out of the woods’ yet, but progress being made

A financial recovery effort at Southwest Memorial Hospital is gaining momentum, officials said during a public forum Wednesday.

About 40 citizens and hospital staff attended the quarterly joint board meeting between the Montezuma County Hospital District and Southwest Health System, the nonprofit corporation that operates the hospital.

Southwest Health CEO Tony Sudduth presented a financial update on the encouraging results of an aggressive recovery effort that began after the public was notified in May that the hospital was in danger...


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