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Hiawatha Hospital taking steps to improve finances
01/10/2019

(KNZA)--Hiawatha Community Hospital has implemented a number of cost cutting measures in an attempt to bring the hospital back into financial security.

For the past several years the hospital has been operating in the red due in part to mandates related to the Affordable Care Act and Medicare reimbursement cuts.  

Hospital CEO Jeff Shelton says monthly operating expenses have been averaging $2.2 million, with current monthly revenues between $1.8 and $1.9 million. The hospital experienced operational losses of more than $7 million from 2014-2017.  

As of January 6, the hospital implemented a little more than one million dollars in cost cutting measures—including a mandatory two percent base wage reduction for all employees and reduction in employee fringe benefits.

The hospital is also looking at other ways to cut costs and increase revenue.

Shelton other hospital officials will be meeting with the Brown County Commission and Hiawatha City Commission in the coming weeks to discuss possible financial assistance.

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