Vulnerable Hospitals Turned To Outside Firms As Saviors. Some Were Bled Dry And Left To Die.
ProPublica and The Frontier take a deep dive into rural hospitals in Oklahoma who were desperate for help and pinned their hopes on private management companies that promised a turnaround.
ProPublica/The Frontier:
The Only Hospital In Town Was Failing. They Promised To Help But Only Made It Worse.
It was the sort of miracle cure that the board of a rural Oklahoma hospital on the verge of closure had dreamed about: A newly formed management company promised access to wealthy investors eager to infuse millions of dollars. The company, Alliance Health Southwest Oklahoma, secured an up to $1 million annual contract in July 2017 to manage the Mangum Regional Medical Center after agreeing to provide all necessary financial resources until the 18-bed hospital brought in enough money from patient services to pay its own bills. (Bailey, 6/4)
ProPublica/The Frontier:
These Hospitals Pinned Their Hopes On Private Management Companies. Now They’re Deeper In Debt.
At least 13 hospitals in Oklahoma have closed or experienced added financial distress under the management of private companies. These companies sold themselves to rural communities in Oklahoma and other states as turnaround specialists. Revenues soared at some rural hospitals after management companies introduced laboratory services programs, but those gains quickly vanished when insurers accused them of gaming reimbursement rates and halted payments. Some companies charged hefty management fees, promising to infuse millions of dollars but never investing. In other cases, companies simply didn’t have the hospital management experience they trumpeted. (Bailey, 6/4)
