Case Studies

Like many rural and small community hospitals, Liberty-Dayton Regional Medical Center, a 25 bed critical access hospital, deals with significant challenges. They have an outdated facility, competition from nearby Houston hospitals and a large percentage of self-pay patients. In 2010, Liberty-Dayton Regional Medical Center faced significant financial challenges, and was forced to close. Fortunately, a group of strong community leaders that serve on the local Hospital District Board purchased the hospital from the IRS and worked together with a group of dedicated employees to re-open the hospital within 30 days.

This case example looks at Rehoboth McKinley Christian Health Care Services in Gallup, New Mexico. In 2014, it was in dire financial straights and was on the verge of closing its doors, as are the majority of the facilities that seek out NewLight Healthcare’s assistance.

The infographic displayed below illustrates some of the issues that the hospital was facing: 58% Decline in Inpatient ADC, a 400% Decline in Net Income, and a $4MM Net Income Shortfall. The gut reaction of any business facing financial hardship is to cut — cut budgets, cut staff, cut non-essential services, etc. Even after all this, though, RMCHCS was still sinking deeper into the hole. This was another illustration that, at least in the healthcare field, you can’t cut your way to prosperity. The answer in this case was Turnaround Through Growth. Rural hospitals are often a critical part of their community, and too often, when rural and critical access hospitals fail, the ripples are felt much deeper than just the loss of the care facility. Every hospital has its own unique set of strengths, weaknesses, opportunities, and problems, but all share the common thread that their survival is linked to the overall welfare of the community. NewLight Healthcare approaches every client with this in mind, and through our relationships with vendors and our experience in working in the healthcare management field, we aim to bring the same type of positive outcome to each and every healthcare facility with whom we are contracted that we were able to with this example. If you think NewLight Healthcare might be able to help your facility, please reach out to us. We’re here to help .

Throckmorton County Memorial Hospital (TCMH), a 14-bed Critical Access Hospital, was experiencing significant fluctuation in cash flow and overall financial performance.

In May 2011, The TCMH Board of Directors engaged NewLight Healthcare to manage their hospital. Both the board and NewLight worked collaboratively to develop a plan that would produce positive financial results required for sustained viability and growth. TCMH Board President Bryan Key said, “It has been a pleasure working with the NewLight Healthcare team. Their expertise in managing critical access hospitals is very apparent. The new programs and revenue sources are having a tremendous positive effect on the financial stability of Throckmorton County Memorial Hospital.”