HMC struggles to stay afloat after COVID-19 pandemic, bad debt

In Habersham County, the Habersham Medical Center is struggling to stay afloat.

During a recent meeting of the Habersham County Board of Commissioners, the board approved a resolution granting Habersham Medical Center to seek a bond up to the amount of $5.2 million to reduce its recurring financial hardships.

According to Habersham County Commission Chairman Stacey Hall, there is a shortage of revenue due to the COVID-19 Pandemic.

Hall says the cancelations of elective procedures coupled with the hospital’s existing debt has put Habersham Medical Center at high-risk for closing.

Habersham Medical Center CEO Lynn Boggs says “The COVID-19 pandemic is now further compromising our viability because, in order to protect the public and our staff, we must limit routine testing and elective ambulatory services, which are a significant portion of our normal revenue.”

The Habersham County Hospital Authority also approved the hospital’s plan to seek a multi-million-dollar bond during its meeting last week; during which, the board also announced furloughs for some members of the support staff at the hospital.

In a press release following the Authority meeting, Habersham Medical Center Administration said “the decision to temporarily reduce staff will not affect direct patient care. Although furloughed employees will cease or have reduced work temporarily, they will remain in active status with the expectation of returning.”

The release also stated that “Habersham Medical Center and the Habersham Board of Commissioners remain optimistic that Northeast Georgia Health Systems will acquire Habersham Medical Center within five years as outlined in HMC’s May 20, 2019 Letter of Intent.”

Habersham Medical Center is a 53-bed, acute care hospital that serves approximately 80,000 residents in Habersham and adjoining counties.

In addition to the hospital, Habersham Medical Center operates Habersham Home, an 84-licensed-bed skilled nursing facility, and HCMC Home Care, the service area’s sole agency for hospital-based home health providers.

WNEG News will continue to follow this story and bring you additional details as they become available.