Glencoe Regional Health Services (GRHS) recently cut $2.3 million in expenses from its budget, the equivalent of 46 full-time positions.
The McLeod County Chronicle reports Chief Executive Officer Jon Braband said that last week.
Braband said a combination of factors led GRHS to believe it would operate at a loss in 2013, but “we undershot our projections.” Braband said the local health-care system lost about $2 million in 2013 and “Our costs were about $2 million more than the revenue we received.”
For several years, Braband said government programs such as Medicare and Medicaid have not paid their fair share toward medical costs.
The past practice has been for health-care systems to bill the gap between what Medicare and Medicaid paid and the actual cost to private insurers. Braband indicated those private insurers are now balking at picking up the difference.
In addition, private individuals’ health insurance premiums have risen and, as such, people are opting for policies with higher deductibles and higher co-pays.
Braband says “The volumes have been soft.”
In addition, Braband said, hospitals and other health-care organizations tend to operate differently than most businesses.
He said “Our main reason to be here is to be a care-giver organization, not a business, but we do have business principles we need to follow.”