Bartlett Regional Hospital reported a series of operating improvements and structural changes to the Assembly Finance Committee on April 5, and said it expected to repay a $2 million City and Borough loan over three years, beginning with a $667,000 repayment this budget year.

The hospital said it has moved from reactive to proactive management, adopted a lean operations approach and hired or expanded several clinician services. Bartlett’s leadership told the committee it has posted ten months of positive operating results and reported a March net margin that, through February, produced an overall net margin improvement of about $6.5 million year‑to‑date versus the prior year.

Service expansions the hospital cited include new orthopedic clinics and an ophthalmology clinic that quickly filled its new appointment capacity; oncology infusion and other specialty services also reported growth. Bartlett said it is working with a larger health system partner, Virginia Mason, to widen specialty access and clinical education options.

But Bartlett also warned of material downside risks tied to federal policy. Hospital leaders estimated that a federal rollback of Medicaid expansion funding — should the federal budget or policy change — could reduce Bartlett revenues by a worst‑case $4.6 million, a figure Bartlett presented as a planning scenario rather than a prediction. The hospital asked the committee to note that federal reimbursements for disaster response and other grant‑funded projects also carry timing and approval risk with FEMA and other agencies.

Debt and fund balance: Bartlett told the committee it would begin repaying the Assembly’s prior $2 million appropriation in FY26 (the hospital has proposed to repay $667,000 in FY26 and similar amounts in subsequent years). Hospital representatives said they plan to maintain a healthy cash position and that the hospital’s 10‑month positive run gives the board confidence in the repayment schedule, subject to federal funding outcomes.

Ending: Bartlett asked the committee to acknowledge both the operating progress and the federal exposure; hospital leaders asked the city to remain alert to grant timing risk while the hospital pursues facility planning and a multiyear capital program under its new strategic and facilities planning processes.