Hutcheson hospital posts profit
Though amounts might be small, Hutcheson Medical Center has added to its cash reserves since filing for Chapter 11 reorganization in federal bankruptcy court during November 2014.
“Cash is king in bankruptcy court,” Farrell Hayes, the hospital’s president and CEO, said during the hospital’s April board meeting.
While not a princely sum, Hayes said the hospital added about $250,000 to its cash account during March and now has a cash balance of slightly less than $1 million.
As part of the bankruptcy proceedings the hospital must file complete financial reports on the 20th day of each month
“We spent $351,000 more than we collected during the last 4½ months,” Hayes said. “April was the best month in a long time, cash-wise, and we should have $1 million in the bank by the end of the month.”
Contributing to the positive cash flow has been an increase in the daily census — the number of those hospitalized — the closure of some unprofitable specialized services and more emergency room visits. Also, those admitted to Hutcheson have been treated for more serious conditions and for longer periods.
While it is not something to be considered as something that should be applauded,” Hayes said, “patients we have have been a lot sicker. That is a good thing for a hospital.”