The Regional Medical Center in Orangeburg, S.C., has less cash on hand than it needs to adhere to loan agreements it has with banks, according to The Times and Democrat.
Under bank loan requirements, the hospital must have 100 days' cash on hand. At the end of January, the hospital fell short of that requirement by two days. One day of cash on hand equals about $587,902 at the hospital, according to documents cited by The Times and Democrat.
The reason the days of cash on hand fell in January was due to it being a month with three pay periods, Dion Franga, MD, the hospital's finance committee chairman, told the newspaper.
RMC CFO Liza Porterfield said the hospital will speak with the banks about the issue and work with an auditing firm to see where RMC can recover more cash.
The hospital has until March 31 to report its days of cash on hand to the banks.
In December 2019, the hospital closed its primary care practice — a move that affected about 1,100 patients — because the practice had recorded net losses for the past two years.
Read the full report here.
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