Financial concerns raised after opening of Sevier’s new hospital

By Patrick Massey

Sevier County’s new hospital and its finances dominated the discussion during the February meeting of the Sevier County Quorum Court.

Officials with the Sevier County Medical Center approached justices of the peace with a plan to fund the hospital over the next several months until it is able to bill insurance and receive reimbursement for services through Medicare and Medicaid. Right now, the hospital is unable to bill these healthcare providers and is, in effect, providing medical services at little to no cost. That means the hospital is currently operating without any meaningful income.

“When it comes to a critical access hospital, or an acute care hospital, which is technically what we are right now, and when we’re brand new, we have nothing,” said Dr. Steve Cole, chancellor of

UA Cossatot and the chair of the Sevier County Medical Center Board of Governors. “The only thing we have is sales tax revenue. Our monthly expenses run close to a million dollars. That’s not a surprise to us. We’re open, we’re saving lives already, but we’re not making any money. We have no income right now.”

Hospital officials estimate it could take around five years before the hospital nears complete solvency and is able to meet expenses through its own revenue.

The current financial situation is one Cole and other hospital officials have discussed openly and officially over the last two years. The revenue gap, Cole said, will be apparent until the hospital can show a certain level of in-patient stays. Currently the hospital is approximately halfway towards reaching that goal. In total, the Sevier County Medical Center has seen over 300 patients since its opening on Jan. 23.

Once that threshold is met, the hospital can become eligible for reimbursement for its services and bill insurance providers. In the meantime Cole said the hospital must fill the revenue gap by securing a line of credit.

“As early as two years ago we were talking that we are under no illusions and we will need, at some point when we start this hospital, some type of assistance in

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