Becker's Hospital Review

12 CFO / FINANCE Texas hospital furloughs 25% of workforce By Alan Condon Mid Coast Medical Center-Central in Llano, Texas, is taking several measures to reduce costs and maintain operations at the facility. e 25-bed critical access hospital has furloughed 12 employees, about 25% of its workforce, to create about $30,000 in savings every payroll cycle. e furloughs address staffing redundancies to right-size needs during periods where there is little or no patient volume or demand, according to the hospital. "Many of the professionals from our health system team have worked diligently to avoid many of the measures we are implementing," Brett Kirkham, CEO of Mid Coast Health System, said in a Dec. 13 news release. "ese steps are necessary to manage the facilities in Llano efficiently and ensure ongoing availability of healthcare services." e hospital cited several factors that have contributed to its financial challenges, including the rising costs of supplies, wages and other operating expenses due to inflation, fewer traditional Medicare patients and an increase in patients utilizing Medicare Advantage plans. MCMC-Central leaders said they have kept Llano County officials updated on the strain local challenges and macro industry issues put on the hospital. "MCHS has been transparent with Llano County officials regarding the need for additional financial support through local tax dollars and/ or philanthropy to maintain current operations," Mr. Kirkham said, noting the area is one of a few in Texas that does not utilize a hospital district as a local taxing authority to fund hospital operations and local health and wellness investment. "Profitability without local support will continue to limit the development of a strong local healthcare system as Llano County grows," he said. MCMC-Central, formerly Llano Memorial Hospital, joined the MidCoast Health System in January 2021. MCHS later converted the hospital to critical access status to secure greater reimbursement for services and continue to serve the community and our patients. n Health systems' investment income rebounds By Alan Condon L arge health systems' investments rebounded substantially in the third quarter, according to a Becker's analysis of financial documents. This boost in investment income provides an essential buffer for hospitals and health systems grappling with operational losses, as they continue to face rising costs, workforce challenges and reimbursement pressures. For many systems, these gains represent a significant turnaround from the losses reported in the same period last year, providing a hint of financial stability amid a challenging healthcare environment. Here are 10 health systems' investment returns for the three months ending Sept. 30, 2024, compared to the same three-month period in 2023. Editor's note: This is not a comprehensive list. Kaiser Permanente (Oakland, Calif.): $3.3 billion gain, up from a $1.1 billion gain in the third quarter of 2023 Ascension (St. Louis): $730.3 million gain, up from a $434 million loss for the three months ending Sept. 30, 2024 CommonSpirit (Chicago): $617 million gain, up from a $289 million loss for the the three months ending Sept. 30, 2023 Mayo Clinic (Rochester, Minn): $590 million, up from a $132 million loss in the third quarter of 2023 Trinity Health (Livonia, Mich.): $580.8 million gain, up from a $140.7 million loss for the three months ending Sept. 30, 2023 Mass General Brigham (Somerville, Mass): $467 million gain, up from a $168.9 million loss for the three months ending Sept. 30, 2023 Cleveland Clinic: $339.9 million gain, up from a $120.4 million loss for the third quarter of 2023 Bon Secours Mercy Health (Cincinnati): $338.7 million gain, up from a $106.8 million loss in the third quarter of 2023 UPMC (Pittsburgh): $311.1 million gain, up from a $54.7 million loss for the third quarter of 2023 Mercy (St. Louis): $156.4 million gain, up from a $3.2 million loss for the three months ended Sept. 30, 2023 n

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