Rural hospitals fare better this year, official says

Published 12:00 am Wednesday, June 20, 2001

FERRIDAY, La. – Rural hospitals, including Riverland Medical Center, got more from this year’s legislative session than ever before, Administrator Vernon Stevens told the hospital’s board Tuesday night.

But in a time when many rural hospitals are struggling to make ends meet, Riverland is still looking for ways to cut costs, he said.

Included in the state’s budget for fiscal 2001-02, which starts July 1, is enough money to pay for 100 percent of hospitals’ uncompensated costs, or money such hospitals lose by treating Medicaid patients.

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Last year, Riverland lost just over $1 million treating Medicaid patients. But the hospital got paid last week for 30 percent of last year’s uncompensated costs, Stevens said.

&uot;This is the best legislative session we’ve had in five years,&uot; Stevens said.

But in other business, Stevens told the board that the hospital spent $56,000 more than it budgeted for the month of May. That is still better than expected, said board Chairman Larry McManus.

That gap is partly due to the fact that the hospital spent $10,000 more in employee benefit costs, mostly employee insurance claims; $9,000 more in utility costs; $8,000 more in clinic costs; and $6,000 more in lab costs than it had originally budgeted.

One solution could be for the hospital, which is now self-insured, to try another system of insurance. &uot;I don’t know if we could get it cheaper if we’re not self-insured, but these big claims sure can hurt you,&uot; Stevens said.

The hospital is already making other changes to cut costs, including making changes in purchasing and adjusting the number of nurses during each shift to reflect the number of patients the hospital has. The hospital also lost two doctors recently and might keep those positions vacant, reducing costs even more, Stevens said.

More cuts could be made but would have to be discussed further by the board’s Finance Committee, which is now scheduled to meet June 28.

During its Tuesday meeting, the board also approved the appointment of a new internist for the Freedman Clinic and reappointed McManus and Fred Butcher as the board’s chairman and vice-chairman, respectively.