The Salem Township Hospital board has voted to abate its entire property tax levy for next year’s taxes.
The 3-2 vote came against the advice of administration that was concerned the hospital’s finances would already take a hit from federal government changes in Medicaid. But the three members voting in favor, Mark Clark, Brian Gansauer, and Todd Woodruff, noted the hospital has $46 million in the bank now and even if they lose the maximum projected of $16 million dollars they would still be in good financial shape. The tax levy generates about $275,000 a year.
After the meeting, hospital CEO Jim Timpe gave an update on how much the hospital could lose under the Medicaid changes.
“We do know that they’re estimating an impact of about thirteen percent reduced revenue for hospitals that accept Medicaid, which we are one of those and we fit into the model that they have. There is a big concern, because the feeling is that a lot of people will drop out of Medicaid because of the work requirements and the administrative burden that that puts on the patient.”
Timpe says less Medicaid will result in more self-pay and charity care. He anticipates the charity care that already tops $1.5 million during the first seven months of the fiscal year could grow.
Timpe says another federal law change could reduce the amount of revenue the hospital pharmacy can produce, potentially costing the hospital another $430,000 a year.
Fortunately, he says the cuts don’t threaten the operation of the hospital.
“We’re in a good situation to weather this. When we look at the Medicaid estimates, they are using a similar ratio of payer mix that we have, which is about 75% Medicare and Medicaid and about 25% insurance. There are many rural hospitals that are closer to 100% Medicare and Medicaid, and in their situations, it could be enough to close the hospital.”
The board was told the West Whitaker Street medical facility has recently received a three-year accreditation following a recent visit by a survey team.
There were 925 vouchers sold for low-cost blood testing earlier this month. It was noted the hospital loses money by selling the vouchers two times a year.
Chief Nursing Officer Lisa Ambuehl reported so far, the flu outbreak in other parts of the country has not occurred here. She reports so far this month only one confirmed COVID case and no flu cases. In October, there were seven confirmed COVID cases and one flu case.
