Trios Board Members Says New Hospital Is In Financial Trouble
A Kennewick Public Hospital District board member said the new Trios hospital is in major financial trouble.
After the bond levy to finance the hospital failed the administration decided to have a contractor build the hospital and they would pay them a monthly lease.
Board member Rick Reil said that was a bad idea and the board now needs professional help to deal with the finances.
Reil said the hospital administration is struggling to figure out how they are going to make the $800,000 monthly lease payments on the hospital.
He said the payments started in June.
Hospital management negotiated with the building’s owner to use some reserve funds left over from the construction account to make lease payments through February.
Reil said now that time is up and the hospitals revenue isn’t high enough to cover accounts payable and the lease payment.
Some of the board members including Reil think it is time to bring in an expert to help them deal with this situation, but all board members do not agree with this idea.
“Some of our board members feel like we don’t need to hire anyone to do this we can do this in house my feeling is if that’s the case why are we in such a predicament now and why are they just now looking at doing a plan you know we have seen this coming for months,” said Reil.
Vice president of the board Vic Johnson said the hospital doesn’t need expert help.
He said the hospital saw an increase in patients in December January and February but they haven’t seen the revenue from those months because of the billing process.
Reil agreed that there is a delay of cash coming in because of billing but says even those busy months won’t put them back on budget.
Johnson said they also have some new programs and the sale of assets that will help increase the cash flow.
Trios board has a meeting this Thursday at 6 p.m. in the Battelle room of the family health building.