Alternative Headline: Medicaid Cuts to Cost Dosher $1.6M Annually
[MM Curator Summary]: Dosher Hospital projects a $1.6M annual loss from Medicaid cuts but is financially positioned to weather the impact better than many rural hospitals.
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Dosher Memorial Hospital is projected to lose $1.6 million annually as a result of Medicaid cuts recently approved in President Donald Trump’s “One Big Beautiful Bill.”
Dosher CEO and President Lynda Stanley briefed hospital trustees last week on the impact of cutting Medicaid enrollment as a result of the federal legislation. The hospital would receive around $2.8 million from Medicaid annually, but that amount will be cut.
However, Dosher is in better shape to weather the storm than many rural hospitals because it has a lower Medicaid patient ratio. It is estimated that 26% of Medicaid recipients in North Carolina may be impacted by the legislation. For Dosher’s population, the number appears to be closer to just 7% in the hospital’s preliminary assessments, Stanley said.
“It is not just the dollars that we are concerned about, we are concerned about the patients that may be impacted,” said Stanley.
Stanley said it will not alter Dosher’s treatment of patients, with or without Medicaid.
“We know these patients need care,” said Stanley. “That’s the bottom line.”
Because Dosher is in a retirement community, it relies more on Medicare coverage for seniors and private insurance. Dosher is also supplemented by a special four-cent Smithville Township property tax used to help pay for capital needs at the hospital.
After Dec. 31, 2026, many Medicaid recipients ages 19-64 will be required to engage in qualifying activities for at least 80 hours per month to maintain coverage. These activities include work, community service or educational programs. The bill is expected to cut $930 billion in Medicaid over the next decade.
These work requirements are expected to lead to a decrease in Medicaid enrollment, with the Congressional Budget Office estimating 4.8 million people could lose coverage. Hospitals and counties are trying to prepare now for the future by asking who or what agency will certify such Medicaid work requirements.
“I don’t have the answer to that,” Stanley told trustees.
The bill also establishes a $50-billion Rural Health Transformation Program over five years, providing grants to states to support rural hospitals and health centers. The goal of the program, said Stanley, is to soften the blow to hospitals financially but it likely won’t be enough to close the gap.
“Across the country, (Medicaid cuts) could have major implications,” said Stanley. “We’re in a pretty good position financially.”
While it will affect Dosher, and the hospital must prepare for the impact, Dosher’s lower volume of Medicaid patients and its overall 2.4% operating margin place it in a greater position to overcome the cuts. The 2.4% margin represents a strong measure of profitability while the hospital industry standard is at just 0.0%.
“In the words of our chairman, ‘We are less worse than some people,’” said Stanley, referring to previous comments by Trustee Chairman Robert Howard. “It’s unfortunate, but that is where we are.”
June finances
Chief Financial Officer Ed Tusa told trustees Dosher’s patient volume in June was very strong. A main reason is operating room procedures were up 52% over last June’s volume.
Dosher finished June with a net operating income of $194,043 when it was budgeted to close with a $274,000 loss. For the year-to-date, the hospital is operating with a positive $1,212,527 in net income. When factoring in all sources of revenue, the hospital finished the month with a positive $781,729 and for the year stands at a positive $6,374,148.
The fiscal year ends September 30.
“To see it come in the black, we’re very pleased,” said Tusa. “Financially, the organization is on a trending basis. We’ve picked up some positive momentum this fiscal year. I don’t believe July will be nearly as strong as June.”
Net operating revenue for June was $5,872,545 while expenses were $5,678,502.
Monthly reports
• Chief Nursing Officer Jill Ward reported the hospital is still awaiting an inspection from DNV’s hospital accreditation team. Dosher also continues to recruit full-time nurses to cut back on its reliance on traveling nurses.
• Trustee Randy Jones, chair of the Building and Grounds Committee, reported moving medical records to the Dosher Wellness Center is complete and the office opens its doors Aug. 4.
“If someone comes to the hospital and wants their records, they can still get them here,” said Jones.
Jones reported work on the new emergency department building remains on schedule and on budget.
• Trustees voted unanimously to accept a recommendation presented by Finance Committee Chairman Linda Pukenas to hire Forvis Mazars LLP of Charlotte to conduct the 2024-25 financial audit for the fiscal year that ends Sept. 30. The contract includes a 2.5% increase over last year. This is the third year Dosher has contracted with the firm.
Credentials
Trustees unanimously approved the following credentials:
Initial appointments – Kathleen Wild, MD, anesthesiology; Hatim Attar, MD, tele-neurology; William Marin, MD, radiology; Ameer Al Wafai, MD, tele-neurology; Brennan Russell, CRNA, nurse anesthetist; Barry Amerson ,CRNA, nurse anesthetist.
Reappointments – Deborah Cobb, FNP-C, family medicine; Patrick Ellis, MD, cardiology; Joshua Felix, PA-C, radiology; Catlin Jo Ferguson, DDM, pediatric dentistry; Zachary Garrett, MD, cardiology; John Geis, PA-C, radiology; Arnold Hite Jr., MD, cardiology; Justin Vandermolen, MD, cardiology; Robert Wilson, MD, radiology; Sara Ward, MD, family medicine; George McLeod, MD, cardiology; Ricardo Maribona, DPM, podiatry; Vishavpreet Singh, MD, orthopedic surgery.
Voluntary relinquishment of privileges – Sugaree Ganzman, NP-C, tele-psychiatry; Robert Delozier, NP-C, tele-psychiatry.
https://stateportpilot.com/news/article_165f2524-2ac4-480b-8fc1-242c06a7976c.html
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