The state budget passed at the end of the legislative session last weekend allows Grays Harbor Community Hospital and Olympic Medical Center in Port Angeles to continue receiving a higher level of reimbursement for patients with Medicaid insurance.
Community Hospital is still struggling financially, operating in the red most months, and the additional income was considered by hospital administration to be extremely important. Hospital CEO Tom Jensen said last month that the higher reimbursement level could mean $3 million to $4 million annually to the hospital.
Administrators say that they often lose money when they treat Medicaid patients because the treatment costs the hospital more to provide than the government reimburses it.
The budget proviso means that through June 30, 2021, the state will pay the hospital 150 percent of the normal reimbursement rate. The extra funding is a recognition of the difficulties rural hospitals face, especially in low income areas experiencing physician shortages.
The hospital says about eight of 10 of its patients receive some form of government subsidized insurance, although not all are Medicaid patients. Medicaid typically has a lower reimbursement rate than Medicare.
“We are extremely grateful to our local legislators for supporting the hospital and the lifesaving services we provide,” said Jensen. “We will continue to work efficiently and effectively for all of those who deserve excellent health care in this county.”
After refinancing its debt, making layoffs and substantial changes in procedures throughout the hospital and its clinics, the financial picture is much improved. As of March, the hospital had a negative operating margin of $486,000 for the year, compared to the negative $2.5 million at the end of March last year. The hospital plans to add cardiology services in June and continues to recruit for additional primary care providers. The hospital plans to develop a “prompt care” clinic at its Aberdeen east campus to reduce the strain on the emergency department, recruit an orthopedic surgeon and it’s preparing for 3D mammography in early summer.
