City takes proactive approach to fund hospital

(Source: KAIT)
(Source: KAIT)

POCAHONTAS, AR (KAIT) - The city of Pocahontas is taking a proactive approach and lending a helping hand to Five Rivers Medical Center.

The city passed a 0.5% sales tax 10 years ago just for the hospital.

Normally the city would give Five Rivers Medical Center a portion of that yearly revenue each month.

Now, they have devised a plan to help the hospital and make the yearly sum of that money available if they need it.

"We have encountered a little bit of tightness on our cash flow," Luther Lewis, CEO of Five Rivers Medical Center, said. "So, we were just asking if we could have an advancement or some kind of arrangement with the city in the event we need to draw on some additional funds."

Lewis said the increase in Medicaid and Medicare volume means the hospital's revenues aren't going up, but their expenses continue to rise which contributed to their funding issues.

While the hospital does not need the money yet, Lewis said it is nice to know it's available.

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