Awaiting a New Dawn

Awaiting a New Dawn

As we feel the fading sun of summer heat, we welcome the opulent dawn of harvest embraced by clear cool days under the unfathomed canopy of cobalt skies along a rich tapestry of great trees with turning leaves of magical colors, amber corn fields, and fields of orange pumpkins along the country side. In these days of transition of seasons, we face the transitional challenges of financial sustainability under the Affordable Care Act.

I thank everyone for their support during this past budget year that comes to a close on September 30th.  This past budget year (October – September) our volume was significantly below budget.  Our revenue write-offs due to high uncompensated care (bad debt and charity care) were significantly above budget.  This combination of low volume and high uncompensated care created a negative impact on our revenue this year.

This coming budget year that starts October 1st will also be very difficult due to the following financial factors:

  • Disproportionate Medicaid Funds - $518,000 decrease
  • Medicaid - $275,000 decrease
  • Blue Cross Blue Shield - $2,100,000 decease
  • TriCare - $2.3 million decrease
  • Uncompensated care - $55 million (Bad Debt and Charity Care)

Because of the grave negative financial impact of the Affordable Care Act, we will be pursuing a potential strategic partner to ensure our sustainability.  The key factor creating this negative financial impact is the rising uncompensated care that is attributed by the State of North Carolina not implementing Medicaid expansion which would cover many of our citizens.  Another factor is write-offs for patients who have insurance with high co-pays and they are unable to pay their co-pay portion.

Like a giant beautiful caryatid cracked by the ugly weight of the Affordable Care Act, our hospital awaits a new harvest dawn.

Sincerely,

Dr. Ed Piper

Former President & Chief Executive Officer, 2000-2016

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