Receiver report unfavorable
The first official report to the court from the receiver managing Hillsboro Community Hospital shows numerous problems at the facility.
Cohesive Healthcare Management + Consulting filed its report to the court Friday.
According to the court filing, the hospital laboratory closed last month because of inadequate supplies and loss of critical staff.
Ambulances were diverted because of the closed laboratory.
Vendors and suppliers have stopped providing critical supplies and services because of nonpayment. The outstanding balances to vendors total more than $230,000.
The receiver has insufficient access to financial records such as bank reconciliations.
No invoices have been entered into accounts payable since October.
A critical medical records, claims processing, and collections vendor is in the process of terminating its relationship with the hospital over nonpayment.
Employee medical and dental insurance were terminated Jan. 1 and there are approximately 56 outstanding claims. Vision insurance was terminated Dec. 1. Prescription insurance was terminated while there was a dispute between CVS Caremark and EmpowerHMS.
One employee is being garnished for unpaid medical bills that are the insurance’s responsibility. The attorney for the creditor said a check to the creditor was returned for insufficient funds.
Life insurance policies were never put in place despite premiums being withheld from employees’ pay. Life insurance should have taken effect Jan. 1, 2018.
Contributions to employee 401(k) plans continue to be withheld from paychecks but the last date contributions were made to the plan was in October.
Workers compensation insurance was canceled in October for non-payment.
Professional liability has an installment due Jan. 30.
Surgery cannot be done until the laboratory is reopened.
Payments for ophthalmology and urology providers have not been made and they have stopped services.
A cardiovascular services contract is out of compliance.
HMC, believed to be the hospital owner, controls the server and shut off all email accounts of the hospital and its employees two days after the court ordered the hospital into receivership.
Access to a payroll management service was also shut off that day. That service is critical for supplying employee W-2 forms.
More information will be available in the next edition.