The Eureka Springs Hospital Commission voted at a special meeting Tuesday, Oct. 10, to move forward with a proposed change in designation from a “critical access” hospital to a “rural emergency” facility.
Tuesday’s meeting, which lasted less than 10 minutes, came on the heels of a workshop held Saturday, Oct. 7, when the commission discussed the proposed change at length.
Kent Turner, the commission chair, said at the Oct. 7 workshop that the federal government is offering significant financial incentives for hospitals to change designations.
“Not just a little cash,” Turner said. “A lot of cash.”
Eureka Springs Hospital would be eligible to apply for grant funding of up to $5 million as a rural emergency hospital. It also would receive consistent monthly payments from the federal Centers for Medicare and Medicaid Services.
“We will apply for the conversion application, which is a document within the Arkansas State Department of Health,” the hospital said in a statement released Wednesday, Oct. 11, by marketing director Samantha Jones. “After that, we can apply for a grant for up to $5 million from the State Department of Health and Finance. If the state legislative committee approves our conversion plan, we will receive half of the grant. Then if our designation change is approved, we will receive the other half of the grant.
“If the designation change is approved, we will also receive approximately $270,000 per month from CMS for our hospital operations. This is a consistent payment to our hospital.”
The financial incentives could be a boon for the hospital, which Turner said has been operating at a loss for the past several months, including a $248,000 deficit last month.
The rural emergency designation is attractive for other reasons, as well. While federal regulations require critical access hospitals to maintain 15 patient beds, rural emergency facilities are required to have six beds. As a rural emergency hospital, ESH would be able to put more focus on outpatient services, chief executive officer Angie Shaw said at the Oct. 7 workshop.
“(The rural emergency designation) brings outpatient services to these rural communities,” Shaw said.
Because the commission cannot vote during a workshop, the Oct. 10 special meeting was necessary. Turner chaired the meeting, which also was attended by commissioners Bryan Beyler, David Carlisle, Barbara Dicks and Sandy Martin. Commissioner Kate Dryer participated by phone.
A motion to move forward with the proposed change in designation was approved without dissent.
Jones said Turner spoke with Eureka Springs Mayor Butch Berry about the proposed change before the Oct. 7 workshop and received Berry’s verbal approval.
Turner will notify the Eureka Springs City Council of the proposed change at its next meeting, scheduled for 6 p.m. Monday, Oct. 23, at the Auditorium.
“Our proposed change from a critical access hospital to a rural emergency hospital designation is not guaranteed, but we are hopeful our application will be approved,” the hospital’s statement said. “As a rural emergency hospital, we would have the opportunity to expand our outpatient services so that Carroll County residents don’t have to drive two hours roundtrip for much-needed healthcare. We believe this designation change is an investment in our hospital and community on the whole, and we are thankful to the State of Arkansas for making it a possibility for us.”
