La Grange, Texas-based St. Mark's Medical Center has received approval as a designated rural emergency hospital to potentially avoid closure after cutting almost half of its staff.
The designation allows struggling rural hospitals to receive increased reimbursement provided they don't offer inpatient services and also maintain 24/7 emergency room access.
As of Feb. 18, the 65-bed facility offered such emergency access, select outpatient services and patient observation. The designation is retroactively applied to the Feb. 24 date of application, KWHI reported April 27.
Increased expenses because of COVID-19 exacerbated pre-pandemic financial struggles the hospital was facing and helped result in an "insurmountable situation," said CEO Mark Kimball in February.
Among the first hospitals in Texas to apply for such a designation, St. Mark's will receive a 5 percent increase in Medicare reimbursements plus a monthly facility fee, the hospital said.