AR collection primary topic at Hospital Board meeting


Last updated 3/29/2018 at Noon

Accounts receivable collection and clarification stood as the primary discussion for the Adams County Hospital District No. 2 Board of Commissioners during the March 22 meeting.

The District recently hired three additional staff members to work in the billing department and assist with payment collection for bills less than 90 days. Inland Northwest is currently contracted with the Hospital District for collection of bills over 90 days.

CEO/CFO Gary Bostrom reported the hospital’s current AR days are 192.77, which is an increase of more than six days than the previous month. The patient accounts receivable decreased by $33,571 during the previous month.

With the addition of the three new employees, Bostrom expects the amount to steadily decrease after the billing department completes their professional training.

Bostrom explained the District’s goal is to have the gross AR under 60 days, and also reduce the net AR.

In the previous month, Inland Northwest collected $89,320.87 for the District. Bostrom estimated $600,000 in billing is generated each month, as an average for the District.

Commissioner John Kragt inquired if the AR also included recent patient visits, even if the patient had not yet received a bill. Bostrom explained as soon as the services are rendered and entered, that amount is added to AR.

Currently, Bostrom said there is an estimated $5.5 million to be collected in AR. Of that, Inland Northwest is handling $2 million, as the bills are over 90 days.

Continuing with the financials, Bostrom reported the District has a net loss of $107,212 for the current month, and a year to date loss of $80,819.

He also explained the District had a $140,000 write-off for Medicaid supplies, due to a misunderstanding of the differences between billing Medicare and Medicaid patients.

He estimated there will be $2 million in contractual adjustments, but the continued write-offs should be fixed in the upcoming months.

The Medicaid billing issue caused a negative net loss for the District, Bostrom summarized.

The Commissioners were also presented with information from Better Health Together for services. The District originally signed a letter of interest with the organization, but at the March meeting, the Commissioners unanimously approved to sign a memo of understanding.

Bostrom explained this expands the amount of grant money the District will be eligible for, as well as increases the probability of offering services, such as behavioral health, at the local hospital.

The Commissioners also made a decision regarding the completion of a new roof on the physical therapy department. Two quotes were received for the project from Heritage Property Services (HPS), and Spencer Roofing and Sons.

The HPS bid was $17,900 and included a full tear off of the existing roof, and the costs of a construction permit in the city.

The Spencer Roofing bid was $9,904.50, but Facility Manager Brian Shanaman said the quote seemed open ended, and potential for additional charges, as it did not include the full removal of the existing roof, only one layer.

Three other local roofing companies were also contacted but bids were not received prior to the meeting. Kragt expressed disappointment for one of the local contractors not being contacted until the week before the meeting.

The Commissioners followed Shanaman’s recommendation and approved the HPS bid, with Kragt being the sole vote in opposition.

The Commissioners also approved the capital purchase of a Pathfast Cardiac Biomarker Analyzer to replace the current machine, which they moved to the surplus list during the meeting. The current machine is 13 years old, while the new model has a potential $15,000 savings on supplies.

With two quotes provided, the Commissioners voted to follow the recommendation of Bostrom and Manager Joel Williams for the purchase of the machine from the vendor with the lowest cost. The estimated cost of purchase is $14,250.

The meeting concluded with Kragt asking about the possibility of creating summer internships for local undergraduate students who are interested in pursuing a career in the medical field.

Bostrom said there was a possibility to create an unpaid internship for a couple of students during the summer.


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