Mid Coast Medical Center-Central in Llano, Texas, is taking several measures to reduce costs and maintain operations at the facility.
The 25-bed critical access hospital has furloughed 12 employees, about 25% of its workforce, to create about $30,000 in savings every payroll cycle. The furloughs address staffing redundancies to right-size needs during periods where there is little or no patient volume or demand, according to the hospital.
"Many of the professionals from our health system team have worked diligently to avoid many of the measures we are implementing," Brett Kirkham, CEO of Mid Coast Health System, said in a Dec. 13 news release. "These steps are necessary to manage the facilities in Llano efficiently and ensure ongoing availability of healthcare services."
The hospital cited several factors that have contributed to its financial challenges, including the rising costs of supplies, wages and other operating expenses due to inflation, fewer traditional Medicare patients and an increase in patients utilizing Medicare Advantage plans.
MCMC-Central leaders said they have kept Llano County officials updated on the strain local challenges and macro industry issues put on the hospital.
"MCHS has been transparent with Llano County officials regarding the need for additional financial support through local tax dollars and/ or philanthropy to maintain current operations," Mr. Kirkham said, noting the area is one of a few in Texas that does not utilize a hospital district as a local taxing authority to fund hospital operations and local health and wellness investment.
"Profitability without local support will continue to limit the development of a strong local healthcare system as Llano County grows," he said.
MCMC-Central, formerly Llano Memorial Hospital, joined the MidCoast Health System in January 2021. MCHS later converted the hospital to critical access status to secure greater reimbursement for services and continue to serve the community and our patients.