Unpaid Patient Bills of Over $24 Million Threatens Schneider Regional Medical Center's Financial Health
Schneider Regional Medical Center is striving to provide advanced healthcare and save lives, according to the CEO, Tina Commissiong. In her recent appearance before the Senate Committee on Budget, Appropriations, and Finance on Tuesday, she defended the organization's $105.7 million budget for fiscal year 2024, making it clear that additional funding is urgently needed.
2023-08-03 17:45:20 - VI News Staff
Projected to generate $72.3 million in net patient revenues in FY 2024, SRMC sources about 70% of its funds internally, Ms. Commissiong explained. She further outlined a proposed $31 million appropriation from the territory’s general fund, targeted to cover uncompensated care and local Medicaid matching requirements, among other items.
In a breakdown of financial burdens, senators discovered the heavy weight of uncompensated care, which is expected to surpass $24 million for the fiscal year. For FY 2023, SRMC has already billed over $14.7 million in charges for self-pay patients, while only collecting 4%, or approximately $556,000.
Among SRMC's biggest challenges is dealing with insufficient reimbursement from Medicare and Medicaid, coupled with difficulties in collecting revenue from self-payers. Ms. Commissiong highlighted that 80% of the care provided to the community by SRMC is either entirely uncompensated or significantly underpaid.
In response to the concern raised by Committee Chair Senator Donna Frett-Gregory regarding the high percentage of self-pay individuals failing to settle their bills post-hospitalization, Ms. Commissiong proposed various solutions, including improving Medicare and Medicaid reimbursement rates, extending local insurance coverage, and lifting the cap on Medicaid funds at the federal level.
Despite funding complications, SRMC is pushing forward with efforts to increase revenue, streamline collections, and trim expenses. CEO Commissiong cited a 17% increase in cash collections, peaking at a record $5.7 million for May 2023. Additionally, she mentioned the introduction of an online bill pay option and text message bill notifications.