Wrangell Medical Center, a critical access hospital and long-term care facility, is on the edge of financial collapse, an independent audit by Anchorage, Alaska-based BDO USA found. A failed attempt to build a new hospital drained the hospital’s coffers of $3.5 million.
According to the Wrangell Sentinel, the medical center has seen expenses rise nearly $2 million to $10.4 million in the past year. The heavy losses mean the organization has less than a month’s operating expenses on hand.
The report faulted the hospital for failing to bill in a timely manner and for not reviewing receivables as they come in. The audit also blamed former CFO Dana Strong for allegedly dragging his heels when it came to completing internal audits and reconciling budget shortfalls.