MRH CFO: ‘We’ll likely have to tap into credit line to weather financial storm’
During his monthly finance report to Memorial Regional Health’s Board of Trustees, new MRH Chief Financial Officer Sam Radke said it could take some time to see the benefits of the $850,000-per-month savings goal the hospital is working towards.
In the meantime, Radke said that MRH should be able to weather the financial storm for the next 120 days.
“We’re revising our financial estimates and it is my belief that we’ll be able to get through the next 120 days,” Radke said. “We’ll likely have to tap into our credit line a few times to get through that time period, but it is my belief that we are now heading in the right direction financially.”
When asked how much credit Radke was expected to use in the 120 days, as well as what the credit will be used for, Radke quickly threw out a credit estimate.
“We have a line of credit that was in place before I arrived that was $2.2 million, Radke said. “We won’t quite hit the $2 million mark (in credit used) – we won’t get that high in credit – but we’ll be able to pay that back as we start to see those savings come in.”
Currently, it costs MRH roughly $175K per day to operate, which is a number that has come down in recent months.
With the suspension of OB/GYN, not filling open positions, and future financial cuts coming some time in January, MRH is trying all they can to keep the doors open to provide care for Moffat County residents.
“The right decisions have been made so far,” Radke said. “We’re in a crunch, but we’re trying to keep the market share, which is another way of saying keep our patients here. The decisions have been right, but we just have to tighten up belts here and there so we can get through this storm.”