Woods Memorial Hospital Timeline
10/18/01 Chattanooga Times Free Press
Etowah, Tenn - Some of McMinn County Commissioners say they are unhappy with the financial outlook for county-owned Woods Memorial Hospital.
They will meet tonight with hospital board members to discuss management options for the facility.
Following the recent resignation of CEO Guy Hazlett, the hospital faces a debt of more than $6 million, some $8.4 million in uncollected accounts and has only $60,000 in cash on hand.
10/19/01 DPA
Woods Hospital needs "breathing room" to improve its cash flow and remedy its billings and collections problems before the county-owned hospital goes bankrupt.
The McMinn County Commission voted in a 7-1-1 decision Thursday to back the Woods Memorial Hospital Board of Trustees on a $1.6 million note to restore the hospital's ability to continue operating.
Commissioner Bob Lamb passed on the vote and Commissioner Gary Mason voted against the move. Commissioner Owen Vincent was absent.
02/08/02 DPA
Etowah - In what was described as a one time-hit, the Woods Memorial Hospital Board of Trustees were told the district has been documented to have sustained a net loss of $7.368 as of June 30, 2001, because of a series of nine changes it has undergone in the past year.
The trustees reviewed the information along with financials statements from the past two years when CPA Tim Royster, the director of HG&A Associates, P.C., presented the 2000-2001 audit reports in a called meeting Thursday night.
The net loss of more than $7 million was much higher than the original $2.5 million estimate, based on the district's cash flow report at the end of June 2001.
10/22/2002 DPA
CEO: Woods remains in financial bind
Although the county's hospital has undergone numerous cutbacks and curtailments to rein in operating costs, Woods Memorial Hospital CEO David Southerland told the County Commission Monday night the hospital is still in financial straits and the near future did not look bright.
The hospital was hit last month the revelation it owed Medicare payment for 1999 and 2000 totaling $195,000. The money is owed to Riverbend Government benefits Administrator, the intermediary agency that manages annual payments for the federal government
04/23/02 DPA
ETOWAH - Woods Memorial Hospital District is seeing some consistent black ink on its financial reports.
For the second month in a row the hospital's financial picture showed revenues exceeding expenditures, according to Board of Trustees member Jerry Seale, who presented Wood's financial figures during Monday night's regular meeting.
04/01/2003 DPA
Woods finances swing from deficit to positive balance
Etowah - With two months of positive financial reports in hand, officials for Woods Memorial Hospital District are claiming a guarded victory over a snarl of financial woes and federal scrutiny that increased the health-care's financial burdens.
10-29-2003 DPA
ETOWAH – After praising its chief executive officer’s job performance, Woods Memorial Hospital District Board of Trustees put quarterly financial gains to use by increasing wages and updating failed computer and software systems.
Though Woods Memorial Hospital continues to experience financial losses and gains from month to month, CEO David Southerland is being hailed a champion by Woods trustees because of this year’s marked financial stability.
While showing a $205,651 loss by the end of September, quarterly financial statements for the hospital report that figure as a $162,253 gain over last year’s first-quarter revenue loss of $367,904.
02/21/2004 Chattanooga Times Free Press
Woods Memorial’s fiscal picture improves
By Ron Clayton Correspondent
ETOWAH, Tenn. — In just two years, Woods Memorial Hospital has come from a yearly $3.3 million operating loss to a 2003 profit of $600,000. Director David Southerland said that is nearly "a $4 million swing" for the hospital, and he expects that trend to continue.
But that doesn’t mean the county-owned hospital is free of financial pressure, Mr. Southerland said. For the next three to five years, the hospital has several large financial commitments, he said. And the facility is nearly $800,000 behind in payments for a county bond issued in the early 1990s.
"It will still be a challenge for cash flow," Mr. Southerland said.
McMinn County Mayor John Gentry said the County Commission is pleased with the financial upswing.
"Once they get all of this paid, they will be in good shape," Mr. Gentry said.
02/24/04 DPA
ETOWAH – The Woods Memorial Hospital District’s 2003 audit was presented to the Board of Trustees Monday night.
Out of the red by approximately $600,000, the hospital district is showing improvement over the $3.5 million debt it had two-and-a-half years ago.
“This is the first time in five years that Woods is in the black by over a half a million dollars,” said Board Chairman Craig Riley.
03-24-2004 DPA
ETOWAH – On any given day, 19 to 20 beds out of the available 39 are in use at Woods Memorial Hospital.
Aiming to more fully utilize the facility’s resources, Woods Memorial Hospital District Board of Trustees is taking steps toward a geriatric psychiatric unit to fill those beds and help the hospital produce an additional $337,000 a year.
At Monday night’s meeting, the Board of Trustees agreed to pursue a contract with Texas-based Horizon Mental Health for a joint 10-bed geriatric psychiatric program. The contract will return to the Board before the program receives final approval.
CEO David Southerland gave a presentation on the profitability of and need for the unit. Horizon conducted a study for the hospital in which it estimated between six to eight patients occupying the facility any day of the month. It’s a voluntary program and only the patient can check himself or herself into the facility.
05-18-2004 DPA
A suggestion to sell Woods Memorial Hospital and its debt problems led to a heated discussion at Monday night’s McMinn County Commission meeting.
Woods CEO David Southerland attended the meeting to present the hospital’s financial report. For this fiscal year, Woods is approximately $174,000 in the red. That’s mainly because the hospital Board of Trustees chose to pay back its nonprofit foundation for money that had been donated to the charitable organization but was used as operating capital.
Southerland explained the foundation had built a fund of $195,000 to be used for purchases outside of the general fund. That money, he said, was used to fund the hospital’s general operations sometime in late 2000 or early 2001, before he came to work at Woods.
05-25-2004 DPA
ETOWAH – Despite a recent impact on the budget from the decision to repay its Foundation, the Woods Memorial Hospital District is not too far off the mark this fiscal year in financial projections.
For the fiscal year to date, the district’s net income is $151,320. Add on recently allocated funds of $328,000 from the state and reverse the $195,000 in repaying the Foundation – which hit the district’s budget in full this year but will see a long-term repayment of $1,000 a month – and CEO David Southerland said the district’s net income would be at $674,320.
That would put the district only $662 under the budgeted projection of $674,982 for 10 months into the fiscal year, he said at Monday night’s Board of Trustees’ meeting.
April alone was one of the more prosperous months with an approximate $78,000 excess in revenues.
07/28/2004 DPA
ETOWAH – Despite continuing fiscal concerns, members of Woods Memorial Hospital District’s Board of Trustees gave each other a pat on the back for managing approximately $964,000 in revenues over expenses in the 2003-2004 fiscal year.
The Board met Monday evening and approved its June fiscal report, wrapping up the year’s finances.
The $964,000 included the $195,000 the Board pledged to return to its not-for-profit Foundation, whose funds were used for daily operations approximately three years ago. The organization will be given $1,000 a month until its reaches the full reimbursement.
09-30-2004 DPA
ETOWAH – A bad month for the Woods Memorial Hospital District was further compounded by a lag in payments to Morrison Management Services, the hospital’s food service provider.
To avoid accruing interest on the debt, CEO David Southerland presented a plan to the Board of Trustees at its meeting Tuesday night to pay $100,000 of a debt estimated to be about twice that size.
“During the course of the past several months, due to cash flow issues, we have gotten behind on our payments to Morrison’s Health Care Center,” he said.
To meet the $100,000 debt, the Board voted to collect $66,000 in the form of a management fee from the McMinn County Ambulance Service, which it had gathered in grants and other sources, and add $34,000 from reserve funds.
10/15/2004 DPA
ETOWAH – After a look at the financial records, the Woods Memorial Hospital District Board of Trustees realized it was facing more than just a summer slump and action would have to be taken.
“To ensure the longevity of the hospital at this time, we have to make staff reductions,” said CEO David Southerland. “I regret that we have to do it, but I would not be doing my job if I didn’t present this to the Board.”
At a called meeting Thursday night, the Board voted on the reduction of 17.5 employment positions. This decision will result in an approximately $650,000 savings annually, or about $54,196 a month.
10/20/2004 Chattanooga Times Free Press
ETOWAH, Tenn. — Citing a low patient count and about one-half the expected monthly surgeries, Woods Memorial Hospital has laid off more than 17 workers, director David Southerland said.
"Our July this year was marginal, and the census in August dropped dramatically," Mr. Southerland said.
The hospital earned $950,000 above expenses in 2003-04, he said, but he estimates a loss of $400,000 so far in the fiscal year that began July 1. McMinn County commissioners on Monday discussed a memo from Mr. Southerland reporting the hospital averaged 10 inpatients a day in August and 11 a day in September. The memo said October numbers appear to be down as well.
10-27-2004 DPA
ETOWAH – The September numbers are in for Woods Memorial Hospital District’s Board of Trustees and, as expected, those figures aren’t very good.
The hospital lost approximately $157,000 in expenses over revenue last month for a year-to-date total loss of $391,000.
The financial drop was dealt with before the final numbers for September came in, thus resulting in Woods reducing 17.5 jobs, letting go 11 people and shifting others into vacant positions about 10 days ago. These numbers combine with a loss of $167,000 in August and show a continuing downward trend.
10/29/2004 DPA
A contract with Baptist Health System to manage Woods Memorial should not be renewed in order for the county to regain control of the financially-troubled hospital district, County Commissioner Jack King said Monday.
But Woods Chief Executive Officer David Southerland disregarded the commissioner’s complaint, claiming King is “misinformed.”
“All indications that I have is that (the contract) will be renewed,” Southerland said. Renewal of the contract could be official by week’s end, according to Woods Board of Trustees Chairman Ed Fiegle.
The hospital district must provide 180 days notice before terminating the contract, which is set to renew on June 30. Because the hospital’s Board of Trustees has scheduled no meetings this week to discuss the Baptist contract, a three-year renewal is guaranteed, Fiegle explained.
“We feel they have been successful in managing the hospital,” Fiegle said of the Baptist system.
King disagrees.
“We could do just as good a job as hiring someone else,” King said.
King’s concerns include the $200,000 yearly cost of the Baptist system, which includes Southerland’s salary.
12-21-2004 DPA
Woods Memorial Chief Executive Officer David Southerland was chided by county commissioners
Monday for staffing decisions made at the financially-strapped hospital.
Chief Financial Officer Carol Arnhart was rehired on an “extended temporary basis” three weeks after announcing her resignation, Southerland said. Arnhart planned to take a position with an out-of-state medical group, but the job plan fell through, according to Southerland.
County Commissioner Jack King questioned the move to bring back Arnhart. He cited staffing reductions at Woods Memorial, which resulted in the elimination of 17 positions in October.
“You need to look back at the people you laid off up there,” King told the hospital administrator.
Southerland fired back in defense of the staffing reduction, refusing to apologize for the decision.
“If you want to run a financially-responsible hospital, I’m going to have to make tough decisions,” Southerland said. “If you don’t want me to run a financially-responsible hospital, then you need to find someone else.”
Southerland also defended his decision to rehire Arnhart for a six-month period. A business manager, secretary, biller and payroll clerk all took temporary leave for various reasons, Southerland explained. Arnhart was rehired with a “significant pay cut” to fill those gaps, he said.
Arnhart couldn’t be rehired as a CFO because the search for a new financial leader was already under way, Southerland explained.
02/04/05 DPA
Woods not up for sale
Athens Regional Medical Center's parent company has expressed interest in purchasing or leasing the county-owned Woods Memorial Hospital District.
Woods officials, however, are not interested in a potential transaction. "The hospital is not for sale," said Woods Chief Executive Officer David Sutherland. "We have basically disregarded the offer."
March 18, 2005 DPA
Lagging surgical volumes continue to cut at Woods Memorial's bottom line, hospital officials said.
“For the future, we have to have surgical volumes come back up for the survival of the hospital,” Woods administrator David Southerland said during a Board of Trustees meeting last week.
Woods officials blame the loss in surgeries on the Surgery Center of Athens, a clinic which opened under protest from the hospital district in April 2002.
03/23/2005 DPA
ETOWAH -- Drastic financial losses this year have put the survival of Woods Memorial in question, hospital district Administrator David Southerland reported Tuesday.
If the financial picture at the county hospital doesn't improve soon, Southerland said cutbacks could be inevitable.
05/16/2005 County Commission Meeting
B. Comments by Commissioner Jack Powers Concerning the Woods Hospital Board Meeting.
Commissioner Jack Powers said that the Woods Hospital Board met on May 12, 2005 and discussed the Geriatric Psychiatric Program. Commissioner Powers said that they have space available now to begin the program with 5-6 beds and will not need the line of credit immediately. Although this report is not official, Commissioner Powers said that Mr. Southerland indicated that the hospital is having a good month.
06/22/2005 DPA
ETOWAH - Woods Memorial Hospital District is getting prepared to begin its geriatric psychiatric project in the near future.
Woods CEO David Southerland told Board members Tuesday night that temporary facilities are being readied at the hospital and equipment is being installed.
Sutherland said the hospital is looking to begin accepting patients into the geriatric psychiatric project by June 30.
In other action, the Woods Board of Directors approved a budget for fiscal year 2005-2006.
The budget has a total operational revenue of $23,507,038 for the hospital district with excess revenue over expenses totaling $627,079 after factoring in the upcoming geriatric unit.
Woods CFO Danny Higginbotham detailed the highlights of the budget.
Higginbotham said the budget shows a general inflation rate increase of 3 percent along with 6 percent increase for pharmacy rate inflation. However, a new drug on the market has dialysis drug costs down by 33 percent.
The budget has an increase of monthly surgeries from 137 to 170 along with an increase in census from an average of 15.9 to 17.9 daily.
07/26/2005 DPA
ETOWAH -- Woods Memorial finished the fiscal year with a financial surge, which lessened the hospital district's overall yearly loss.
08/15/2005 County Commission Meeting
D. Woods Memorial Hospital District Monthly Financial Report.
Mr. Gentry referred to the monthly financial report, as of June 30, 2005, which was provided to each Commissioner. Mr. Gentry said that they have had positive cash flow for 4 or 5 months now.
08/16/2005 DPA
The district ended the year with a loss of $82,500, falling short of its budgeted goal to finish the fiscal year with $565,000 in excess revenue. Last year, Woods had $658,000 to spare at the end of the fiscal year.
But despite this year's slump, Woods' final financial situation was much better than only four months ago, when the hospital as a single entity was $1 million dollars in the red and the entire district was reeling from a $584,000 loss.
At that point in March, hospital officials were contemplating cuts in services.
“Things have really turned around in the past few months,” said Woods spokesman David Hill. “In a $52 million budget, to lose $83,000, that's almost breaking even.”
Woods recovered much of the losses in the last months of the fiscal year.
The Woods district had nearly $200,000 in excess revenues at the end of June. The hospital was budgeted for a loss last month, but earned $145,514.
08/23/2005 DPA
ETOWAH -- Woods Memorial does not need the county's consent to secure a line of credit for capital improvements, the hospital's attorney said Monday.
A 2001 loan taken out by Woods was co-signed by the county, and hospital chief executive officer David Southerland had said he thought the County Commission would have to approve any future notes.
But Attorney Chris Trew reviewed the loan agreement and found the hospital only needs the county's approval if Woods uses property as collateral.
“The agreement with McMinn County does not prohibit the hospital district from borrowing money, provided the hospital district does not secure the loan with a dead of trust or mortgage on real property of the district,” Trew wrote in a letter dated Aug. 19.
08/25/2005 DPA
ETOWAH -- Woods Memorial Hospital will open a family medical clinic in Athens, officials said.
The hospital has leased space in the Eastside Shopping Center on South White Street for the new facility.
The Woods Board of Trustees on Monday approved entering a five-year lease with CBL & Associates Properties of Chattanooga for the space at a cost of $23,000 a year. Woods Chief Executive Officer David Southerland said the price of $8.40 per square foot is “within the normal range for medical office lease rates” in the area.
The hospital Board also agreed Monday to open bids to renovate the 2,750-square-foot space. The owner of the shopping center has discussed helping pay the renovation costs, according to Southerland. A spokesman for the Chattanooga leasing agency could not confirm that, but said it has been discussed.
09/27/2005 DPA
ETOWAH -- Despite negative economic trends such as soaring fuel costs, Woods Memorial posted positive financial gains in August, officials said.
“All we can do is watch our expenses,” said David Southerland, the hospital's chief executive officer. “The physicians have stepped up and admissions in the hospital are strong.”
The average daily census at the hospital was 21 patients last month, up from 10 the previous year.
Woods is still at a loss after a $3,500 gain last month, but the hospital district's overall shortfall is half what it was in 2004.
10/17/2005 County Commission Meeting
D. Woods Memorial Hospital Monthlv Financial Report as of August 31 2005.
Mr. Gentry referred to the Woods Memorial Hospital Monthly Financial Report as of August 31, 2005 which was provided to each Commissioner. He pointed out some improving numbers and added they have had a strong summer.
01/24/2006 DPA
ETOWAH - Woods hospital board members posed strong questions Monday for Chief Financial Officer Danny Higginbotham regarding recent financial shortcomings.
Hospital board member Don Higdon complained that financial data sheets he has requested for four months have yet to be distributed at the monthly Woods meetings. He said some of the information distributed by Higginbotham is “literally useless.”
Woods Board member Dr. Craig Riley also questioned why revenue-producing measures such as changes in emergency room collections and new pharmaceutical components haven't been implemented yet.
“I know these are huge challenges É but the opportunities to generate revenue, it seems to me we need to act more quickly,” Riley said. “It's essential.”
Higginbotham said some measures haven't been implemented yet because of the fledgling cash line available at the Woods district. He said sluggish volumes in November and December left Woods with just enough money to make payroll.
02/20/06 County Commission Meeting
In response to a request from Commissioner Jack Powers, Mr. Royster discussed the financial situation of Woods Hospital. Mr. Royster said although they had a loss this year, they are really close to getting their debt paid off. He sees possibility of improvement but it seems like for every step forward they take, something cornesup that they have no control over (Medicare changes, TennCare changes etc.) that takes them a step back, but added that this is an industry-wide problem.
02/28/2006 DPA
ETOWAH -- A dozen employees of Woods Memorial will lose their jobs as the hospital district looks for ways to improve its financial situation, officials announced Monday.
Woods Chief Executive Officer David Southerland said the job cuts will affect administrative and clerical employees. He said the staff reduction will save the hospital district $325,000 annually.
This is the second year in a row Woods Memorial has pared back its staff to save money.
“The hospital is not performing financially well,” Southerland said. “We are a very lean hospital and nursing home combined.”
Woods Memorial has lost more than $475,000 after seven months this fiscal year. The Woods budget called for the hospital district to be ahead almost $280,000 at this point.
At this time last year, Woods' deficit was nearly $492,000.
03/20/2006 Chattanooga Times Free Press
ETOWAH, Tenn. — A local doctor and member of the Libertarian Party is calling on McMinn County officials to sell the financially ailing Woods Memorial Hospital. "If county residents really want Woods to survive, then it should be sold to a private organization, one which will make sound business decisions with the knowledge that it will not be bailed out by government if it makes the wrong decisions," said Dr. Robert Callaway.
He said Bradley County recently sold its hospital for $76 million and now is "attempting to decide what to do with the $20 million dollars left over from the sale."
But McMinn County Mayor John Gentry said he believes the hospital is "resilient" and likely will overcome its current losses.
"They (hospital officials) are at the end of the tunnel, with hundreds of thousands being cleared up in the next few years," Mr. Gentry said. He said only the hospital board, not the County Commission, can decide whether to sell the facility.
At the beginning of the current fiscal year, Woods officials said they hoped the facility would be financially in the black by this time. Instead, Woods officials announced recently they would lay off 12 nonclinical employees to combat a $475,000 loss.
03/31/2006 DPA
ETOWAH -- An independent audit report released Thursday shows Woods Memorial is making headway on a mountain of debt that had reached almost $6 million at one point.
That debt is now down to $2.4 million, according to an audit report released by Tim Royster, a certified public accountant with the Knoxville-based HG&A Associates firm.
Royster said the hospital's debt could be less than $500,000 by 2007.
04/12/2006 Chattanooga Times Free Press
McMinn hospital cuts debt following layoffs
ETOWAH, Tenn. — Profits from February and March have erased most of a $475,000 operating deficit at Woods Memorial Hospital that forced some layoffs in March, administrators said.
"We have demonstrated that we are financially responsible," hospital director David Southerland said.
Public relations director David Hill said the hospital showed a $202,000 profit for February. Unofficial March figures are likely to be similar, he said. Total patient revenue in 2005 was more than $55 million and reflected a deficit of just more than $300,000, according to a recent audit report.
In March, hospital officials said they had laid off 12 nonclinical workers to offset revenue losses over several months. Hospital officials blamed the losses on low patient numbers and a loss of surgery business. Mr. Southerland and Mr. Hill said some of the hospital’s new efforts are showing success. If the trend continues, Mr. Southerland said, the hospital could at least reduce its losses and possibly come out ahead for the fiscal year.
“That's a huge amount of change that you have to pay out monthly,” Royster told the hospital's Board of Trustees. “Without any big licks, you should be to what I consider a break-even point.”
Woods Chief Executive Officer David Southerland said the hospital is making progress with several of the district's debts.
Southerland said a $1.6 million loan taken out in 2001 to keep the hospital afloat will be paid off in December.
04/17/2006 County Commission Meeting
A. Woods Memorial Hospital District Financial Report for February 2006.
Commissioner Jack Powers referred to the Woods Hospital report which was provided to each Commissioner. Several Commissioners commented they were delighted to see a report “in the black.”
06/262006 DPA
ETOWAH - Woods Memorial Hospital is banking on the upcoming fiscal year to be the time for a financial rebound as its budget projections include a $600,000-plus surplus.
The Woods Board of Trustees Finance and Budget Committee met Monday to look at the 2006-2007 fiscal year budget, along with discussion on the possibility of changing both the health care and retirement plans now in place for employees.
Under the proposed budget for the next fiscal year, which begins July, the hospital is projected to have $635,440 in revenues over expenses with a total operating revenue of just over $24 million.
However, the hospital district is slated to show an overall loss of $75,000 this year which is an improvement of $639,824 loss shown at the end of the 2005 fiscal year.
06/20/2006 DPA
ETOWAH -- Woods Memorial officials are hoping to secure a $1.7 million loan to help the hospital improve its cash flow, as well as to pay the district's insurance provider and other vendors.
The hospital's Board of Trustees voted 5-0 Monday to proceed with a loan of at least $1.7 million. Another option the hospital Board agreed to consider involves paying off old bonds to McMinn County, which would push Woods' loan package total to $2.7 million.
Hospital board member and McMinn County Commissioner Jack Powers abstained from the vote.
In order for the hospital to secure the loan, it must seek approval from the County Commission.
06/23/2006 Chattanooga Times Free Press
ETOWAH, Tenn. — With a burgeoning debt and cash flow available only through the end of July, Woods Memorial Hospital officials admit they may have to close the doors unless the McMinn County Commission approves a $1.6 million loan. But even with that, one board member said the hospital board has to make a major decision within the next nine to 12 months.
"We are in big trouble," director David Southerland told the McMinn Commission on Thursday night. "Without the loan, we will not be able to operate the hospital."
Board member Don Higdon told commissioners several options are available, including sale of the hospital, a joint venture ownership, or leasing the facility, but the loan is necessary to begin negotiations.
06/23/2006 DPA
Facing a near depleted cash reserve and a mountain of debt, Woods Memorial officials told the McMinn County Commission Thursday they are ready to seek new ownership for the struggling hospital district -- either through a sale or some other arrangement.
Hospital officials also asked the county to support a $1.7 million loan to keep Woods open long enough for a transaction to occur.
“We're out of the game,” Woods Board of Trustees Chairman Don Higdon said.
The County Commission deferred action on the hospital's loan request.
06/27/2006 DPA
ETOWAH -- A plan to create a 12-member committee to study ownership alternatives for the struggling Woods Memorial Hospital District was endorsed by the hospital's Board Monday.
“I've come to the conclusion that our business model isn't working,” said Dr. Craig Riley, who made the motion for the Woods Board to proceed with the ownership review.
“We've got to do something different. I anticipate it to be a significant change.”
Options including selling the hospital or exploring a joint-ownership venture with another entity, officials said.
A 12-member committee consisting of county commissioners, Woods Board members, physicians and private citizens will begin the process of seeking alternatives for the hospital.
Woods Board Chairman Don Higdon said he will appoint members to the committee, except for the representatives from the County Commission.
McMinn County Mayor John Gentry will also serve on the new committee.
Gentry, who attended Woods' Board meeting Monday, said officials should be cautious of using the word “sale” when discussing changes at the county-owned hospital district.
06/28/2006 DPA
Unnoticed overpayments from the federal government totaling $335,000 were received -- and spent -- by Woods Memorial, and hospital officials said the subsequent payback highlights a severe cash-flow crisis.
Woods paid the money back in monthly installments of $65,000 from January to May of this year, Hospital Administrator David Southerland said.
“When we were required to pay that back, that's when we started to notice cash-flow problems,” Southerland said.
The federal government foul-up occurred in fiscal year 2004 and 2005 when Woods began receiving transitional outpatient payments, or TOPS, from Medicare.
Because the overcharges were included in other large Medicare payments, Southerland said the hospital didn't notice the additional money until it was too late.
07/06/06 Chattanooga Times-Free Press
ATHENS, Tenn. — The McMinn County Commission on Wednesday agreed to guarantee a $1.7 million loan for Woods Memorial Hospital, but only on condition that the financially troubled hospital be sold within a year.
07/06/06 DPA –Editorial
But Woods Trustee Ed Fiegle said that even with the stipulation to sell, the commissioners made the best the decision and that the hospital board will still have negotiating room.
“It's probably the only position they (commissioners) can take,” Fiegle said. “It doesn't say what percentage ownership has to change. I think it's broad enough we can work with it.”