“A big shot in the arm” is the way Baxter Health CEO Ron Peterson describes the $4.56 million the local hospital is receiving from the state as part of the American Rescue Plan Act (ARPA). The Arkansas Legislative Council approved more than $16 million to be dispersed to four hospitals in the state on Friday. The Fulton County Hospital in Salem is receiving $5 million.
The ARPA money is funds the federal government sent to states so they can allocate it to organizations that were affected by COVID. Arkansas earmarked $60 million for hospitals in rural areas.
Peterson says the state wanted to make sure the hospitals applying for the money could prove they needed it and had a plan of sustainability.
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In August, Baxter Health signed a management agreement with the Fulton County Hospital, something that helped both hospitals with the ARPA funds.
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The Fulton County Hospital will get $2.5 million initially and the other $2.5 million upon completion of the merger. Peterson says the money will be used for operations, to pay back bills and for growth plans.
Baxter Health will get 20% of its funds initially, 40% in six months as long as it meets its sustainability plan and the final 40% in one year. Peterson says those funds will be used for capital improvements and operations.
He says with the expenditures the hospital incurs on a daily basis, the initial payment of roughly $920,000 doesnt go that far.
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Peterson says a big reason hospitals are struggling financially is the reimbursement rate they receive from the federal government hasnt kept up with costs, especially since COVID.
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Peterson says area legislators, including Scott Flippo, Missy Irvin, Stetson Painter and Jack Fortner, were instrumental in helping the two hospitals obtain the funding.
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