August 25, 2021
Gila Regional Medical Center (GRMC) announced its preliminary, unaudited
financial performance for the most recent fiscal year. For FY2021, GRMC
reported a Net Surplus of $5.6M on $67.8M in Operating Revenues. This
year’s performance compares favorably to a $19M Net Surplus loss
in FY2020. After accounting for the forgiveness of the Hospital’s
Paycheck Protection Program (PPP) loan, the financial turnaround for Gila
Regional was an $18M year-over-year improvement.
There were 136 rural hospital closures in the US between 2010-20. GRMC’s
audited financials reflect operating losses of greater than $47M over
the most recent 8-year period prior to FY2021. The Grant County Commissioners,
the Hospital’s Governing Board since April 2020, needed to ensure
GRMC was not added to that count and therefore engaged HealthTechS3 to
provide professional management services.
The Hospital’s financial turnaround was attributed to successful
transition to critical access status, transition of its family medicine
clinic to a designated rural health clinic, service line growth, and expense
management. HealthTechS3 has managed GRMC since June 2020.
GRMC Board Chair Alicia Edwards said today, “While there continues
to be additional room for improvement, this is a giant step forward for
our hospital, staff, and community.” Edwards added, “This
improvement will now allow us to reinvest in our staff and the Hospital.
We look forward to working with HTS3 to ensure our hospital continues
to survive these turbulent times and thrives far into the foreseeable
Mike Lieb, Vice President of HealthTechS3, commented, “We are grateful
for our relationship with Gila Regional and the trust the community has
placed in us to manage the hospital. We look forward to continuing the
financial and operational successes at GRMC.”
The Governing Board of GRMC contracted with HealthTechS3 to provide executive
leadership and management support services to GRMC, effective June 1,
2020. GRMC is a 25-bed county-owned, critical access hospital located
in Silver City, NM. The hospital provides an array of inpatient and outpatient
services, including surgical services, obstetrics, an outpatient oncology
program, and other services vital to the community.
HealthTechS3 (HTS3) is an award-winning healthcare consulting and hospital
management firm headquartered in Brentwood, Tennessee. They provide a
full scope of financial and management support services, with a special
focus on rural, sole community, and governmental hospitals with their
associated clinics, providers, and community services.