Regional Medical Center in Anniston, Ala., is already feeling the financial impact of uncompensated care reimbursement reductions and the state’s decision not to expand its Medicaid program, according to a report from The Cleburne News.
RMC in Anniston and its Jacksonville, Ala., facility lost $1.2 million in revenue this year as the Patient Protection and Affordable Care Act scaled back reimbursements for uncompensated care and state lawmakers opted not to expand Medicaid to help shrink the uninsured population, according to the report.
RMC CEO David McCormack told the News the hospital has also seen an increase in uncompensated care: It delivered $8 million in charity care between January and April this year, up from the $6.7 million in uncompensated services it provided during the same time period last year, according to the report. The increase resulted from the hospital opening rural health clinics.
Because of the revenue loss, RMC has tightened its budget and consolidated services such as obstetrics and gynecology with its Jacksonville facility. Alabama Hospital Association Vice President Rosemary Blackmon told the News many other hospitals in the state are also struggling financially. A survey the AHA conducted this past December showed 41 percent of hospitals were operating with a negative margin, according to the report.
More Articles on Hospital Finances:
Land of Lincoln Health Lost $4M in Q1
Nationwide Children's Hospital Widens Operating Margin to 8.9%
Kaleida Health Posts $1M Deficit for 2013