Financial Performance

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...

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:

‘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...

The Southwest Health System Board of Directors has announced that Anthony Sudduth has been named the CEO of Southwest Health System, effective March 28.

Sudduth joined SHS in April, fulfilling the role of interim CEO.

“During this time, he has led the significant financial turnaround of our organization, and in doing so, has improved every financial metric of our organization,” according to a press release.

Read the full article in The Journal, March 29,...

Thin margins have long been a reality for most rural hospitals, but a worsening array of issues—from increasing charity care and bad debt to declining reimbursements and rural populations—have forced growing numbers of them into financial distress. Despite today’s challenging operating environment, many rural hospitals across the country are using a practical approach to get turned around before bankruptcy or closure become imminent threats.

Step 1: AWARENESS

Know the signs and symptoms of declining financial health

Certain financial indicators are clear signs that “business as usual” isn’t working and course...

The transition to value-based care has required hospitals to improve patient experiences and outcomes, all at a lower cost. In this model, hospitals are responsible for the cost differential, so the urgency around hospital financial performance improvement has intensified. One of the biggest opportunities for hospitals is managing staff productivity, which means maintaining the right number and mix of all staff based on patient diagnoses and volume. Optimizing productivity is paramount because labor is usually the greatest expense for hospitals.

In CHC’s experience, almost every hospital has room to improve...

PLANO, TEXAS (Dec. 5, 2018) – Community Hospital Corporation (CHC), a national leader in community hospital operations, announced the company is concluding a strong year amid challenging times for community hospitals.

“We are pleased with the momentum created in 2018, a year in which community hospitals are seeking ways to improve their performance and sustainability,” said Jim Kendrick, CHC CEO.

Doing more with less, while seeking savings or support funding, has become the norm for community hospitals. Some not-for-profit providers operate within a 3% or less margin, so CHC helps...

North Texas Medical Center, a 60-bed hospital in Gainesville, will be leased to and operated by an organization newly created by Plano, Texas-based Community Hospital Corp.

North Texas Medical Center, which is owned by the Gainesville Hospital District, began looking for a new management company in early 2018 after King of Prussia, Pa.-based Universal Health Services canceled its management agreement with the hospital.

Read the full article in Becker’s Hospital Review, November 29,...

West Palm Beach, Fla.-based Rennova Health entered a definitive agreement to acquire 54-bed Jellico (Tenn.) Community Hospital and an outpatient clinic in Williamsburg, Ky.

Jellico Community Hospital will be Rennova’s third acute care hospital. The company already owns Big South Fork Medical Center in Oneida, Tenn., and Jamestown (Tenn.) Regional Medical Center.

Read the full article in Becker’s Hospital Review,  November 26,...

WEST PALM BEACH, Fla, Nov. 26, 2018 (GLOBE NEWSWIRE) — Rennova Health, Inc. (OTC: RNVAD), (OTC: RNVAW) (“Rennova” or the “Company”), a vertically integrated provider of industry-leading diagnostics and supportive software solutions to healthcare providers, that acquired its second hospital in Jamestown, Tenn. on June 1, 2018, announced today that it has entered into a definitive asset purchase agreement to acquire an acute care hospital in Jellico, Tenn. and CarePlus Center in Williamsburg, Ky., an outpatient clinic offering primary care, diagnostic imaging and laboratory services. The hospital known as Jellico...