Drew Memorial Hospital in Monticello has been awarded $4,926,897 in American Rescue Act funds as the hospital prepares to merge with Baptist Health beginning July 1, 2023.
The merger comes after the hospital reported major financial woes earlier this year.
The hospital reported in February that their most recent cash balance showed a decline of more than $1.2 million at the time.
Baptist Health CEO Doug Wells told the hospital board at that time that health care is facing challenges coming out of the pandemic, including payer issues, labor issues, and said he has seen those same problems at other facilities.
He said Drew Memorial is surrounded by mostly critical care hospitals in the region and that affects how the hospital is paid. Drew Memorial is not a critical care hospital.
He told the board the weakness is a revenue cycle problem.
“You don’t have the leverage that an organization like Baptist Health does when you walk into a room and start talking rates,” Wells said. “You have labor challenges. We have the ability to spread those costs out.”
The merger was approved by the Drew County Quorum Court on June 12 with the takeover beginning on July 1, according to the Advance-Monticellonian newspaper. However, it will take approximately five months before Baptist Health is able to transition the hospital fully into their network.
Baptist Health will manage the hospital beginning July 1, but the hospital will continue to operate under Drew Memorial’s license until the hospital is fully brought into Baptist Health’s network in December.
