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  • Last modified 286 days ago (Jan. 31, 2019)

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First receiver report shows numerous problems

Staff writer

The first official report to the court from the receiver managing Hillsboro Community Hospital shows numerous problems at the facility.

Cohesive Healthcare Management and Consulting filed its report Friday.

According to the filing, the hospital laboratory closed last month because of inadequate supplies and loss of critical staff. Ambulances were diverted because of the closed laboratory. Surgery cannot be done until the laboratory is reopened.

Vendors and suppliers have stopped providing critical supplies and services because of nonpayment. The outstanding balances to vendors total more than $230,000.

A critical medical records, claims processing, and collections vendor is in the process of terminating its relationship with the hospital over nonpayment.

The receiver has insufficient access to financial records such as bank reconciliations.

HMC, believed to be the hospital owner, controls the server and shut off all email accounts of the hospital and its employees two days after the court ordered the hospital into receivership. Additionally, the owner cut off access to a payroll management service that same day. That service is critical for supplying employee W-2 forms.

No invoices have been entered into accounts payable since October.

Employee medical and dental insurance were terminated Jan. 1 and there are approximately 56 outstanding claims. Vision insurance was terminated Dec. 1. Prescription insurance was terminated while there was a dispute between CVS Caremark and EmpowerHMS.

One employee is being garnished for unpaid medical bills that are the insurance’s responsibility. The attorney for the creditor said a check to the creditor was returned for insufficient funds.

Life insurance policies, which should have taken effect Jan. 1, 2018, were never put in place despite premiums being withheld from employees’ pay.

Contributions to employee 401(k) plans continue to be withheld from paychecks but the last time contributions were made to the plan was in October.

Workers compensation insurance was canceled in October for non-payment.

A payment for professional liability insurance is due Jan. 30.

Ophthalmology and urology providers have stopped providing services because they have not been paid.

A cardiovascular services contract is out of compliance.

Kansas Department of Revenue, one of 11 codefendants in the foreclosure lawsuit that led to the hospital being placed into receivership, on Tuesday filed its answer to the petition. KDOR, named a defendant because of three outstanding tax warrants for unpaid withholding tax, disclaimed any interest in the hospital real estate or property and asked to be dismissed from the lawsuit.

Last modified Jan. 31, 2019

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