Financial Performance

A recent blog post by Community Hospital Corporation (CHC) details the situation that caused Southwest Health System to reach out to CHC for assistance in early 2018, the plan they created to turn around the hospital, and the final results to date.

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...

A recent guest blog by Community Hospital Corporation (CHC) featured tips for successful turnaround by Anthony Sudduth, CEO of Southwest Health System.

Last year, Southwest Health System (SHS), in Cortez, Colorado, found itself in the midst of a significant financial crisis. The hospital had violated bond covenants associated with a $32 million building project, failing to meet the 80 days cash-on-hand requirement for four consecutive quarters. This violation triggered technical default, which could have led to bankruptcy and closure. Instead, SHS acted swiftly and decisively, becoming not a cautionary tale...

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By Anthony Sudduth, CEO, Southwest Health System

Last year, Southwest Health System (SHS), in Cortez, Colorado, found itself in the midst of a significant financial crisis. The hospital had violated bond covenants associated with a $32 million building project, failing to meet the 80 days cash-on-hand requirement for four consecutive quarters. This violation triggered technical default, which could have led to bankruptcy and closure. Instead, SHS acted swiftly and decisively, becoming not a cautionary tale but a comeback story and an inspiration.

The SHS turnaround is a bright...

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...

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...

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...

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...

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...

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...