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GLH losses for May total $3.16 million; total usable cash now down to $4.63 million

Friday, July 1, 2022, 3:59 pm News Flash Archive

Today, the Greenwood Leflore Hospital Board of Trustees held its regular monthly meeting.

A settlement payment from Elekta for $43,000 was accepted by the board. This was the result of the data breach in Elekta's radiology software that accidentally disclosed patient data for some GLH cancer patients. The money will be used by GLH to help pay the costs of damage that certain patients endured due to Elekta's data breach failure.

The hospital had to change insurance carriers for property, auto, equipment breakdown, and other liability policies from Chubb to Alliance, due to a sharp increase in premiums quoted by Chubb because of an increase in claims made by GLH. The new premium will cost less than the Chubb proposal. There have been increased instances of equipment damage due to problems with Greenwood's power grid during the last year, which caused the spike in claims.

The hospital is still having to pay insurance on some nearby houses that the hospital previously bought that are no longer needed. The city and county must approve the sale of the properties, but so far, the county has not done so. Tom Flanagan, hospital board attorney, is working to get final approval for the property sales from both the city and county officials.

According to the financial report provided by Mrs. Dawne Holmes, the Hospital had an overall loss of $3.16 million in May. Operating expenses were $9.1 million, while operating revenue was $5.9 million

At the end of May, the usable cash reserves, after netting out the deferred revenue and the Medicare short term loan which must be paid back, are $4.63 million. The cash burn for May was $1.85 million.

In the first 8 months of the 2021-22 fiscal year, the overall loss was $8.98 million, even though pandemic grants totaling $8.2 million were spent to offset steep revenue losses during those 8 months.

The anticipated USDA loss revenue grant, which was expected to be received in May, was in fact received in early June, so the impact of that $1 million grant will not be seen until June's financial reports.

The board went into executive session, with the public and press excluded for 61 minutes.

During the executive session, the Board approved at least one termination of a physician or provider, but the identity of the terminated provider was not disclosed.

The Board of Trustees meeting may be viewed here: GLH Board Meeting, July 1, 2022

To review our reporting on GLH and its financial woes, please see here: Index of Greenwood Leflore Hospital news articles

John Pittman Hey
The Taxpayers Channel

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