Three rural hospitals, including North Arkansas Regional Medical Center in Harrison, are set to receive a total of more than $6.3 million in federal COVID-19 relief funds after state lawmakers gave preliminary approval Tuesday.
According to a release from Arkansas Advocate, the full Arkansas Legislative Council on Friday will vote on whether to disburse the funds from the American Rescue Plan Act of 2021, aimed at covering costs incurred during the pandemic.
On Tuesday, the Legislative Council’s Performance Evaluation and Expenditure Review subcommittee approved awards for:
$1,368,582 to North Arkansas Regional Medical Center in Harrison;
$1,549,573 to DeWitt Hospital and Nursing Home; and
$3,441,839 to Chicot Memorial Medical Center in Lake Village.
The awards were approved with no dissent or discussion.
North Arkansas Regional cited changes to its workforce as a reason for requesting financial aid. The hospital reduced its contract labor by 40% per hour, but it has still seen a net increase in supply and labor costs and a net decrease in revenue and reimbursement, according to the consultant evaluations provided to lawmakers.
Alvarez and Marsal evaluated North Arkansas Regional’s finances from September 2022 to February 2023 and saw a 9% decrease in operating revenues in the span of a year, according to evaluation documents.
Visit Arkansas Advocate for more information.
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