Hospital Turnaround

Gainesville Hospital District saw light at the end of the tunnel—a new beginning for North Texas Medical Center (NTMC). The district had leveraged bankruptcy to get the legal protection and time it needed to develop a plan to restructure $40 million in debt, pay creditors, and keep the hospital open. The district secured debtor-in-possession financing and filed a bond validation to enhance the appeal of its bonds as investments. Gainesville Hospital District was on the right track to emerge from Chapter 9, but the district needed to...

Stemming the closure rate of rural hospitals may depend in part on the financial support provided by hospital tax districts. This can be difficult to swallow for many who are reflexively against higher taxes. However, voters may come around when the case is made that a modest property- or sales-tax levy or hike could provide the necessary financial support to keep their hospital open and sustainable for their community.

Hospital Tax Districts Fill a Funding Gap

Tax districts help ensure the survival of hospitals that may be at risk of...

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...

GUEST BLOG

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...

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...

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:

Cortez, Colo.-based Southwest Health System tapped Anthony Sudduth to serve as permanent CEO, effective March 28.

Four notes:

1. Mr. Sudduth became interim CEO of the health system in April 2018.

2. He has experience serving in CEO, COO and CFO roles at both nonprofit and for-profit healthcare facilities.

3. He holds an MBA from Eastern Kentucky University in Richmond.

Read the full article in Becker’s Hospital Review, March 28,...

Plano, Texas – March 28, 2019 – The Southwest Health System Board of Directors is pleased to announce that Anthony Sudduth, CPA, FACHE, FHFMA has been named Chief Executive Officer for Southwest Health System, Cortez, Colo., effective today, March 28, 2019. Sudduth joined Southwest Health System in mid-April 2018, fulfilling the role of Interim CEO.

“During the past year, Tony has led the significant financial turnaround of our organization, and in doing so, has improved every financial metric of our organization. This success could not have been possible without the...