Lake City Community Hospital officials say the facility is making money on a monthly basis but still needs to dig its way out from under $5 million of debt.
The Lower Florence County Hospital District Board, which was set up to oversee the facility in the interest of the community, took over the hospital’s daily operation from Mid Carolina Hospital Group in April.
Though the board is still in litigation with Mid Carolina Hospital Group to void the 10-year, $100,000 lease agreement, Lower Florence County Hospital District Board Chairman Scotty Campbell said the board is using a microscope to try and find every area in which to save money without cutting any of the 250 jobs the hospital provides.
“Things are running smooth for being at the bottom of the well,” Campbell said, during a Lower Florence County Hospital District Board meeting on June 19. “We’re treading water, but we’re not drowning.”
With an average of 143 patients last month and 145 patients this month, and revenue of $1.8 to $2 million in cash receipts for this month, things “look good,” according to Lake City Community Hospital Chief Executive Officer Pete Bowman.
Campbell suggested the purchase of a low interest 7-year bond as one possible way to deal with the debt.
“Seven years is really short term,” Lower Florence County Hospital District Board member Scott Askins said.
Renegotiating payment schedules with private insurance companies was one suggestion made during the meeting of ways to “actively go after every penny.”
Bowman said the last time these contracts were negotiated was in 2005.
Board members also discussed offsetting debt with the Association of Counties, which allows individual’s outstanding bills to be collected from their state income tax return.
Bowman said Mid Carolina Hospital Group discontinued this payment collection method last summer.
Campbell also said he plans to take the financial information to each departments in the hopes that employees can suggest cost saving measures.
“It’s not a secret, the hospital is tight, tight, tight right now...” Campbell explained, “but if each department could save $500 a month, that would go a long way in paying off debt.”
Payroll is $340,000 every other Friday, Bowman added.
Another significant financial factor discussed was that bad debt is running $550,000 a month with the emergency room contributing significantly. Bad debt includes patients with no insurance and insurance co-payments that are 120 days old.
Another way to explore options while holding on to every penny, may be to bring in a Chief Financial Officer, but Campbell said the hospital can’t afford to fund such a position full-time.
Campbell suggested hiring a consultant or a Chief Financial Officer on a part-time basis.
Board member Floyd Keels suggested going to the South Carolina Hospital Association for assistance instead of hiring a consultant.
Campbell also said the South Carolina Pee Dee Health Care Alliance has offered to help with financial consulting.
Campbell even said the hospital may have to begin informing patients of their previous balance when they come in for services.
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