Craig, Colo.-based Memorial Regional Health is in negotiations with Broomfield, Colo.-based Sisters of Charity of Leavenworth Health System about a potential alliance that could include SCL Health leasing, owning or operating the 25-bed rural hospital, according to the Craig Daily Press.
News of the potential agreement comes after Memorial Regional Health CEO Andy Daniels disclosed to staff that the hospital was in a cash-flow crisis.
"Bottom-line message is that we have to take immediate correction until such time that our cash in begins to exceed our cash out," Mr. Daniels wrote.
Mr. Daniels said the hospital is working to cut expenses by more than $850,000 a month. Some measures include a wage freeze, increasing copays for employees on its health plan, reducing continuing education funds, eliminating two paid holidays next year and removing cafeteria meal stipends for medical workers.
The potential letter of intent with SCL Health will be discussed at Memorial Regional's Dec. 19 board meeting, according to the report.
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