X

Massena Memorial CEO tells town board he fears new GOP federal administration could take $6 million from MMH

Posted 12/21/16

By ANDY GARDNER MASSENA -- Massena Memorial Hospital’s CEO is concerned that the incoming Republican federal administration could kill two pieces of federal funding that would take $6 million away …

This item is available in full to subscribers.

Please log in to continue

Log in

Massena Memorial CEO tells town board he fears new GOP federal administration could take $6 million from MMH

Posted

By ANDY GARDNER

MASSENA -- Massena Memorial Hospital’s CEO is concerned that the incoming Republican federal administration could kill two pieces of federal funding that would take $6 million away from the hospital.

Right now, MMH gets about $4 million from the Sole Community Provider program. It gives federal dollars to rural hospitals where there are no others within a short radius.

“It has to be renewed. If it’s not renewed, there’s a likelihood $4 million of our revenue could disappear overnight. We benefit from increased Medicare revenue,” MMH CEO Robert Wolleben told the Town Council at their Wednesday meeting.

MMH also benefits seven figures from a program called 340B, which helps hospitals in buying high-cost drugs.

“That totals $1.5 million to us. That legislation has to be renewed,” the MMH CEO said.

He said although no one knows how the new Republican majorities in Congress will act, he doesn’t have a good feeling.

“I don’t know if it’s going to be renewed or not. The tea leaves don’t look good. The incoming administration has said they want to cut the budget,” Wolleben said. “This could be a $6 million impact.”

MMH has been struggling to get their finances in order. Since Wolleben took the helm, they have turned what was some months hundreds of thousands of dollars in losses into tens of thousands of dollars in monthly gains.

They finished November with an $86,796 net gain, down from a $94,390 net gain in November 2015. They have gained $1,230,227 through Nov. 30, up from $182,049 year-to-date at the same point last year.

The hospital is on track to privatize at some point next year. Wolleben has said this will allow them to link with a larger health system, putting them at a financial advantage. It also qualified them for a $5.2 million state payment to get rid of all their long-term debt. Wolleben anticipates that will be paid around Jan. 15.