St. Vincent Health said it would not have been able to run its payroll on Friday without external funding.
LEADVILLE, Colorado — The Lake County Commissioner reluctantly approved Thursday night to use nearly $500,000 of taxpayer money to bail out the county’s only hospital.
Leadville’s St. Vincent Health told about 100 employees that it wouldn’t be able to run payroll on Friday without additional outside funding. The state’s Office of Health Care Policy and Funding said it had already paid $178,000 in advances to hospitals earlier this week, making more than $1 million in total advances to date.
Related: Leadville Hospital says it has no money to pay its employees this week
“This is an outrageous and shocking dereliction of duty,” the county board told hospital leaders in an official resolution, describing them as “a terrible failure.”
Nonetheless, three county commissioners voted to send $437,000 to the hospital’s governing board, subject to certain conditions being met.
These terms included publicly apologizing to both employees and taxpayers, creating a 90-day financial plan, posting monthly “understandable” financial updates, and ex-CEO and CFO and requiring hospital leaders to consider reducing or removing salaries. High-level leaders will try to pay back the money and never ask the county for funds again.
The hospital board declined to comment on whether it would accept those terms at its Thursday night meeting, saying it had not had a chance to review the documents with its attorneys. members of the group indicated they did not agree to the terms.
But the hospital’s board said additional funding and support “from multiple sources” would allow payroll to run on Friday.
“St. Vincent Health remains committed to our patients, staff and communities,” Chief Operating Officer Kathryn Fry said in an emailed statement. “This funding provides us with the opportunity to continue patient care while working towards sustainable solutions to our current financial situation.”
Frye declined to answer further questions, including whether patient care was affected due to lack of funding.
Several current and former employees told 9NEWS that the financial troubles began months before this week’s emergency warning about “financial threats” at the hospital.
John Mora, a former hospital IT staff member, said: “I figured it was only a matter of time before my check wouldn’t even arrive.”
Mora, a lifelong leadvillain, said he got a job outside the hospital in September. He said he saw it happen.
“What else is not paid for at that point?” he asked.
Mora said she relies on St. Vincent Health for her family’s health. It was his first stop last month when a close family member of his had a heart attack. “You need something for when things go wrong,” he said.
He now worries about the hospital’s future the next time his family needs help. It takes at least 40 minutes to the next nearest hospital.
Mora also said he was worried about what would happen to his hometown if the hospital’s financial difficulties continued.
“Honestly, who would want to move to a town without healthcare?” he asked.
But Mora said he was unsure of the long-term financial stability of the facility.
“Frankly, I’d be surprised if they could make it through the end of the year,” he said.
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