Issue link: https://beckershealthcare.uberflip.com/i/1169964
8 CFO / FINANCE 2 hospitals to close in Ohio, West Virginia By Ayla Ellison O hio Valley Medical Center in Wheel- ing, W.Va., and East Ohio Regional Hospital in Martins Ferry are slated to close in October, according to e Intelligencer. President and CEO Daniel Dunmyer cited mounting financial losses as one of the factors forcing the hospitals to shut down. He also placed blame on a local competitor's alleged violations of the Anti-Kickback and Stark Law. "OVMC, EORH, and their physician practices have lost more than $37 million over the past 2 years as they struggled to overcome declin- ing volumes, declining reimbursement, and the substantial harm caused by the conduct alleged by the government in United States of America ex. rel. Louis Longo v. Wheeling Hos- pital, Inc., R & V Associates, LTD., and Ronald L. Violi, United States District Court for the Northern District of West Virginia Case No. 5:19-cv-00192-JPB," read the statement from Mr. Dunmyer. Officials decided to initiate the closure pro- cess in August aer failing to secure a stra- tegic partner or buyer for the hospitals. Mr. Dunmyer said the search involved discus- sions with more than 15 health systems and providers, according to e Intelligencer. "OVMC and EORH will immediately begin working with federal, state, and local agen- cies to develop a definitive timeline for the closure of both facilities," Mr. Dunmyer said, according to the report. "e closure process for facilities like OVMC and EORH typically takes 60 to 90 days and OVMC and EORH will share a definitive timeline with all inter- ested parties in the coming days." n New York hospital faces financial peril without buyer By Ayla Ellison M assena (N.Y.) Memorial Hospital will receive a $20 mil- lion state grant and drastically improve its financial position by becoming part of Potsdam, N.Y.-based St. Lawrence Health System, according to NNY360. Massena Memorial Hospital CEO David Bender provided de- tails on the hospital's financial situation during a Luncheon Club meeting in Massena Aug. 19. He said the hospital nearly failed to make payroll in August and was on the verge of clos- ing its doors, according to the report. "We could either meet payroll or pay off these folks that we need to keep the ER open and the OR open," he said, accord- ing to NNY360. "It was one or the other and you can't have that, so the closed sign would have gone on the doors." The financial troubles prompted the municipal-owned hos- pital to move quickly to enter into an asset purchase agree- ment with St. Lawrence Health System. Massena Memorial was awarded a $20 million state grant in July, but the award was contingent on the hospital joining St. Lawrence Health System. The $20 million grant combined with an additional $8 million investment from St. Lawrence Health System will help put Mas- sena Memorial on a path to financial stability. "That's $28 million today that we didn't have a month ago," Mr. Bender said in August, according to NNY360. "I think it's an extremely strong, necessary step forward. This $28 mil- lion doesn't solve the problem. We're still losing $1 million a month. That would disappear fast if we did nothing, but it gives us a chance to solve the problem." n Arkansas hospital closes with no notice By Ayla Ellison N orth Metro Medical Center in Jackson- ville, Ark., shut down Aug. 20, leaving lo- cal residents without an emergency room, according to KATV. The TV station reported that no notice was given be- fore the hospital shut down. On Aug. 21, black plastic covered signs near the hospital's entrance and signs on the locked doors said, "Sorry we're closed," accord- ing to the Arkansas Democrat-Gazette. Jacksonville Mayor Bob Johnson wasn't surprised by the news. He told KATV that he's been trying to find a new operator for North Metro Medical Center for months because he knew the hospital's closure was imminent. He's still trying to secure a buyer for the fa- cility, according to the report. With North Metro Medical Center closed, the local EMS service will transport patients to other hospi- tals in the area. Jacksonville EMS was already taking most patients to hospitals other than North Metro Medical Center because the hospital dropped out of the state's trauma system more than two years ago, according to KATV. When contacted by the Arkansas Democrat-Gazette, North Metro Medical Center CEO Dale Anderson pro- vided a news release that stated hospital and city offi- cials are discussing the possibility of a health system operating a freestanding ER in Jacksonville. n