Hospital receives federal grant funds

RITZVILLE – East Adams Rural Healthcare CEO Corey Fedie reported the hospital being in a “very good financial picture” after receiving a second wave of grant funding through the CARES Act.

“It’s pretty exciting news,” Fedie said at the May 27 board meeting. “These funds will be crucial to offsetting the incurred COVID expenses we’ve already experienced as well as into the future. We’re in a very good financial position now and should be able to get through, if this continues a couple more months.”

Fedie said the funds are grants and/or loans with restrictions on spending.

“We have to follow certain guidelines and there’s the potential of having to pay some back, so we are being very diligent on what we spend it on,” Fedie said, adding the stimulus funds would help offset costs such as testing, contracted pulmonologists and ultraviolet machines to sterilize masks.

As of May 19, EARH had received a total of $6,508,045 in COVID-19 grants and loans. Monies received in May include a U.S. Department of Health and Human Services Stimulus grant in the amount of $3,237,958 and a Paycheck Protection Program loan for $885,719; with the amount used for COVID-19 paycheck slated to be forgiven.

Chief Financial Officer Carl Flanagan said after receiving $4.1 million in May, the big question was how to allocate that out by the month.

“I talked to auditors, and they suggested doing it based on lost revenues and added expenses,” Flanagan said. “Based on that, we should be able to get back to budget or a little better.”

In other financial news, Fedie reported at the May 20 finance committee meeting the sale of the Life Care Center will not take place as soon as expected. Fedie said the sale was expected to close the first week of June, but has been delayed. Fedie said a second buyer is interested, in case the sale falls through. Life Care Center of Ritzville is located at 506 S Jackson Street.

In a May 27 written report, Fedie said the hospital is still focusing on physician recruitment for full time status at the clinic as well as for specialty services.

“The candidate we had hoped to recruit decided not to come,” Fedie said, adding two more candidates were being reviewed from other recruiters.

Staff vacancies have helped slow losses caused by COVID-19, according to Fedie.

“The COVID-19 pandemic has significantly impacted our business. Patients have had to put off care, we’ve incurred significant financial losses, physicians don’t want to travel for interviews, and many others,” Fedie said, adding the good news in the mix was staff continuing to learn telehealth and conducting phone and video interviews.

“We’ve never offered it in Ritzville before, and it’s a nice option to help folks out who can’t travel in to the hospital or clinic,” Fedie said. “We’d love to see them in person, but it’s an extra service and a convenient option.”

In other business, commissioners heard:

- Ambulance runs totaled 58 in the month of April, an increase of 23 over April 2019. Year to date runs are at 221, with the total of runs in 2019 at 510.

- The hospital is looking at bringing in two medical students this summer for experience and job shadowing.