Valley General Hospital in Monroe, Wash., and Capella Healthcare in Franklin, Tenn., have suspended partnership discussions.
According to the report, downward pressure on federal and state reimbursements and proposed reductions from commercial payors hindered an agreement on a financial model for the partnership.
Valley General has faced financial issues recently. According to the report, declining reimbursement rates for Medicare are expected to cost the hospital $2.3 million in revenue for 2012, and state changes may cost it $800,000. Additionally, charity care and bad debt cost Valley General $8.3 million in 2011.
Valley General is actively pursuing discussions with other hospital systems, according to the report.
Washington's Valley General Enters Into Discussions With Providence Regional
Washington's Valley General Exploring Partnerships With Four Hospitals
According to the report, downward pressure on federal and state reimbursements and proposed reductions from commercial payors hindered an agreement on a financial model for the partnership.
Valley General has faced financial issues recently. According to the report, declining reimbursement rates for Medicare are expected to cost the hospital $2.3 million in revenue for 2012, and state changes may cost it $800,000. Additionally, charity care and bad debt cost Valley General $8.3 million in 2011.
Valley General is actively pursuing discussions with other hospital systems, according to the report.
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Washington's Valley General Exploring Partnerships With Four Hospitals