DCH Hospital strategizing in face of cuts in Medicaid and ACA - ABC 33/40 - Birmingham News, Weather, Sports

DCH Hospital strategizing in face of cuts in Medicaid and ACA

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     DCH Hospital in Tuscaloosa says it is having to get creative to remain financially sound.

     Tuesday, President & CEO Bryan Kendrick discussed the hospital's 2014 outlook with city council members.  Kendrick says they anticipate a drop in government reimbursements will make things worse.

     Sequestration has already cut $4 million dollar and the hospital stands to lose $11-million in changes under the Affordable Care Act.  However the hospital says charity care and bad debts have increased to $40 million dollars. 

     Kendrick says they're trying to save through attrition and cutting expenses but at the same time maintain adequate care. "2014 we're not going to be in the red.  We're hoping that not to be the case at this point.  We're budgeting to have a very small margin.  And that number we're projecting to be smaller in 2015 and that's about all I can tell you at this point but it will be less."

     However, Kendrick says the hospitals they operate in rural Fayette and Pickens counties are operating in the red.  But, they're working to keep them open.

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