OFFICIALS TRYING TO DETERMINE THE FATE OF ST. MARK’S
Several officials gathered in La Grange at a recent meeting of the Fayette County Commissioners Court to try and figure out what is going on with the St. Mark’s Medical Center.
Community Hospital Corporation CEO Jim Kendrick told the commissioners that even after the recent changes at the hospital, they still will not make enough money to pay for its mortgage.
CHC is a Plano, Texas based company that took over the management of St. Mark’s in 2011.
Last month, St. Mark’s changed its designation from a full-service hospital to a Rural Emergency Hospital. The change in designation resulted in the elimination of 64 jobs, 58 full time and six part time. It reduced St. Mark’s to offering 24/7 emergency medical services, patient observation, and select outpatient services.
According to Kendrick, the hospital owes $13 million on its mortgage, and debt service on the loan amounts to $1.9 million a year.
Kendrick said under the new REH designation that the Centers for Medicare and Medicaid will give St. Mark’s a $272,000 monthly “facility fee”, and increase their Medicare reimbursement rate to 105%. However, it still won’t be enough to pay off the loan.
St. Mark’s CEO Mark Kimball told commissioners that the hospital has seven years to pay off its mortgage under the current terms of their loan. The mortgage is guaranteed by the Federal Department of Housing and Urban Development.
Kimball said they worked out a deal with HUD to suspend mortgage payments for 12 months, which buys them some time, but that the mortgage issue needs to be addressed.
The hospital took a referendum to the voters in 2019 for a 25 cent tax per $100 valuation in an effort to help save the hospital, but it was rejected by over 80% of those who cast ballots.
According to the Fayette County Record, the commissioners awarded the hospital $500,000 in American Rescue Plan Act Funds in October 2021. Kimball said that they purchased one piece of equipment for $135,500, and that they have plans for additional purchases and upgrades.
Kendrick was asked about the $13.8 million in COVID related funding they received. He stated that it all went to St. Mark’s.
Kendrick insisted that the problems are not a managerial issue, but a state wide issue. He said that one in every four hospitals in rural Texas are in danger of closing and sited rising costs as the biggest issue.
KWHI reached out to State Senator Lois Kolkhorst and State Representative Stan Kitzman for comments, but they were unavailable for interviews.
I THINK THAT THE GOVERMENT SHOULD STEP IN AND HELP OUT WITH THESE HOSPITALS. INSTEAD OF HELPING THE IMMIGRANTS AND THE PEOPLE NOT WANTING TO WORK.
What the hospitals want is the Government to come in a bail them out,just like the Banks and others we the taxpayers bail out. They come in pay themselves huge amounts run the place in the ground then claim they can’t make the payments,its a complete lie and we the taxpayers get the bill. Daddy always said if the smell fishy don’t eat it so I hope our elected officials don’t buy CEO Jim Hendricks cheese. We have no idea of the fraud in health care its massive..