Kansas hospital faces financial crisis with 80 facilities at risk of closure

During the Pratt County Commission meeting on February 24, 2025, urgent discussions centered around the financial struggles of Pratt Regional Medical Center (PRMC) and the broader implications for healthcare in Kansas. The Kansas Hospital Association recently reported that approximately 60 hospitals in the state are at risk of closing, a number expected to rise to between 75 and 80 based on 2024 data. This alarming trend highlights the critical state of rural healthcare, with many facilities facing operational losses exacerbated by rising costs.

PRMC's financial difficulties were a focal point of the meeting, as officials revealed that the hospital has experienced a 35% increase in expenses over the past three years, while reimbursement rates have remained stagnant. This imbalance has led to significant operational losses, prompting the closure of the urgent care clinic and potential further cuts to services.

In response to these challenges, PRMC's leadership is actively exploring various strategies to stabilize the hospital's finances without resorting to tax assistance, which is a necessity for about 86% of rural hospitals in Kansas. Measures already implemented include a hiring freeze on nonessential positions, administrative pay cuts, and a reduction in agency labor costs. The hospital is also investigating new revenue opportunities, such as offering PET scans through a contracted service, which could provide additional income with minimal upfront costs.

The meeting also addressed the staggering $11 million in past due accounts, primarily from patients unable to pay their bills. To tackle this issue, PRMC is utilizing the ABLE Pay system, which allows patients to make payments without interest, thereby improving collection rates.

As PRMC navigates these financial hurdles, the hospital is undergoing a strategic operational and financial assessment, supported by the National Rural Hospital Association and USDA. This initiative aims to identify pathways for improvement and ensure the hospital's sustainability in the future.

The discussions at the Pratt County Commission meeting underscore the urgent need for community support and innovative solutions to preserve essential healthcare services in the region. As PRMC works to overcome its financial challenges, the outcomes of these efforts will be crucial for the health and well-being of Pratt County residents.