SCH’s recent update contradicts report given in July to the SCBC

Stephens County Hospital’s current finances contradicts an update presented to the Stephens County Board of Commissioners in July.

As WNEG News reported on Wednesday, Stephens County Hospital has announced that if the County is unwilling to financially support the hospital with $3- to $5 million annually, the hospital could be forced to close its doors.

In July, Stephens County Hospital’s Interim Chief Executive Officer Ray Leadbetter came before the Stephens County Board of Commissioners with an update regarding the hospital’s finances.

During that meeting, Leadbetter says the hospital’s finances had improved in recent months.

“For the month of May, our gross revenue was up $496,000 compared to last May which is real exciting. Year-to-date for the first 8 months, we’re up $6 million in growth revenue. Net revenue after deductions for the month of May is up $506,000 and year-to-date, we’re $2.8 million in net-revenue above the first 8 months of last year, so we’re excited about that. We did have a loss from operations in May, to the tune of $385,000 that sounds not great, but when you compare that to the loss of $1.2 million for May of 2020, that’s an improvement of $875,000 and we’re really excited about that,” he said.

He continued to explain, in July, that the year-to-date loss from operations were lower than they had been.

“Year-to-Date from loss of operations is actually 2.2 million lower than it was during the first 8 months last year. You’ll be glad to know that early July, we made bond payment of $1,117,863, I’m sure you guys are excited to hear that,” he said.

Stephens County Hospital was the recipient of $4.6 million in Payroll Protection Loan Forgiveness along with $4.9 million from HHS funds.

“The PPP, Payroll Protection Loan Forgiveness Program that has been submitted to the SBA. We’re hoping before the end of the Fiscal Year, we’ll be forgiven that debt of $4.6 million. So, we’re excited about that. In addition to that, we were given some HHS funds to the tune of $4.9 million and that needed to be spent by the end of June, and we did that. So, in our financials for the month of June, we’ll be recognizing $4.9 million in loan forgiveness for the HHS Funds,” he said.

The hospital also received over $800,000 from a rural stabilization grant.

“We were eligible for a Phase VI grant for rural stabilization, that was $880,000, $490,000 has gone to telemedicine…$391,000 of that will be going towards equipment,” he said.

Despite, Leadbetter’s explanation of the hospital’s financial standing in July, this week, the Stephens County Hospital Authority Board met with the Stephens County Board of Commissioners and the Toccoa City Commission with the news that unless the county made an annual commitment of $3- to $5 million the hospital could be forced to close.

Stephens County Chairperson Michelle Ivester told WNEG News that the county was blindsided by the news that the hospital was so close to closing.

“We are very disheartened to find out the financial state of our hospital. We were alongside the employees, last night, when we learned the news of their financial state. There’s going to be some decision that have to be made moving forward. We’re really hoping that the City of Toccoa will partner with us in making these decisions. Obviously, the Hospital Authority will be on board with making these decisions and whatever that needs to be done moving forward with the County Hospital; they ultimately oversee the hospital. We have no regulation or authority out there. This is not something that we can make a decision on; the way they run their hospital or the things they do out there. There’s a lot of questions that need to be asked and a lot of answers that need to be uncovered,” she said.

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