Putnam General Hospital (PGH) is currently facing a loss of over $1 million annually in funding from a decision by insurance companies to disallow payments to hospitals for toxicology testing. This decision by insurance companies restricts payments to those hospitals that perform tests for their own patients.
In the past seven years, PGH has overcome an almost $6 million debt by utilizing its toxicology services, the Georgia HEART program, and good management to get out of debt. Prior to this achievement, the financing provider not only charged a high rate of interest on the debt but imposed an annual $500,000 “management fee.”
Foreclosure and shutting down our hospital once appeared imminent. However, instead of providing a lifeline of crucial support, the BOC during this four-year period (subsequent to 2012) actually CUT the county’s support.
PGH, as with most rural hospitals, operates at a loss due to less than cost-of-service payments by Medicare and Medicaid, which represents the majority of PGH patients. PGH’s operating loss for 2023-2024 was $1,814,000, even with toxicology income. We (the PGH board) recently asked for a $380,000 increase from $750,000 to $l,130,000 [in annual support from the county].
However, the proposed county budget to be voted on by the Board of Commissioners this Friday denies any increase, while other areas of county support were increased.
Have we not learned anything from the mistakes of the past? Most members of the BOC express support for the hospital. But as is appropriately said: “Actions speak louder than words.”
If you are concerned about PGH and its future, you are invited to make your feelings known at the final budget hearing this Friday (Aug. 2), at 9 a.m. at the County Administration Building (117 Putnam Dr., Eatonton).
Tom Thompson BOC Chairman 2009-12 Eatonton