A deeper dive into the finances of Alabama hospitals tells a different and more complex financial story. Annual financial reports of three large hospitals in the state suggest Alabama hospital systems made significant operating profits between 2020 and 2022. Reported losses are primarily the result of unrealized investment losses associated with the 2022 stock market downturn. Despite the financial market pullback, they continue to sit on hundreds of millions of dollars of surplus funds.
[Craig] Richmond's is the second departure, among the hospital system's senior leadership, since news broke of the scandal last fall. The hospital board fired former CEO, Dr. Akram Boutros, alleging he gave himself $1.9 million dollars in bonuses that were not authorized by the board.
It’s no secret that the U.S. healthcare industry is in deep distress. According to BDO’s 2023 Healthcare CFO Outlook Survey, the forces that made last year so tough for healthcare — including higher labor and supply costs — aren’t going away in 2023. In fact, they could get worse. This begs the question: What are healthcare CFOs going to do to improve their organizations’ finances this year?
The interim CEO of St. Vincent Health, the struggling hospital in Leadville, said prior management made "bad decisions" that led to multimillion-dollar losses and contributed to the hospital's struggles to pay vendors and employees.
The downgrade to 'BBB' and the Negative Outlook reflect a sizable operating loss at TM in FY22 (Sept. 30 YE), a material decline in unrestricted liquidity, and the execution risk related to TM's ability to stabilize operations and rebuild its unrestricted liquidity.