Hospital's critical care status in critical condition
$30 million in HUD loans for the new North Valley Hospital and $1 million in medicaid and medicare reimbursements are on the line unless a Medicare board allows North Valley Hospital to maintain its critical care access status.
Until a Medicare board renders an official ruling, the hospital's project is in limbo and its future is uncertain.
In response to a rule that prevents any relocating hospital's from maintaining their status, North Valley Hospital was informed of the technicality on March 21. The rule was implemented after an Idaho hospital relocated next to a for profit hospital.
North Valley has community wide support, including a letter of support from Kalispell Regional Medical Center.
North Valley administrator Craig Aasvad was quick to point out that any relocation would have triggered the situation, and that a remodel of the current location has been declared unfeasible due to seismic issues.
"Any new site would be an issue," Aasved stated at a Monday press conference.
The technicality puts the hospital in a corner, throws the project in limbo and threatens to escalate construction costs so high as to jeopardize the entire project unless Senator Baucus can appeal to the Medicare board. The not-for-profit hospital has already invested $1.4 million in land costs and $1.8 million in legal costs, design and feasibility studies.
Baucus has been in meetings and fighting for the hospital since North Valley learned of the bureaucratic hurdle.
"Nobody know what this ruling is going to say," Aasved declared.
The hospital is putting their hopes into Baucus' appeal as well as encouraging the community to come forward with a show of support that believe can help end the gridlock. Letters of support are available at the hospital, and calls to our representatives are encouraged.
The double blow strikes North Valley Hospital at the heart of its operations and its future. 68 percent of its receipts are reimbursed through medicare/medicaid due to its critical access status to the tune of $1 million per year. The status was granted in a state waiver program that deemed the hospital a "necessary provider". The investment in the new site is also threatened.
"We have 3.2 million invested in a project that there could be an issue with," Aasved explained.
The Medicare ruling is not the last resort, congress may act on the matter after a decision has been made. However, according to Aasved, any delays could drive costs up to high to make the project feasible.
If you would like to help show your support for the project, please contact the hospital's foundation director, Carol Blake, at 862-3631 or email her at cblake@nvh.org.