Nov 15, 2008 - 04:06:08 CST
RICHARDTON (AP) - Richardton's hospital is facing challenges as it converts to a nursing care facility, including the loss of emergency services and the need to retire a $750,000 debt.Richardton Memorial Hospital Administrator Jim Opdahl told area residents this week that the change is necessary for the hospital to continue in the community. The hospital will give up is "critical access" designation to St. Joseph's Hospital in Dickinson.
"Richardton Hospital and St. Joseph's Hospital are experiencing some significant financial problems," Opdahl said. "The situation is such that both organizations were struggling financially with the potential that they wouldn't exist in the future."
The Richardton hospital was awarded a federal grant of more than $990,000 to pay for its conversion to a nursing facility. But officials say the grant cannot be used to retiring an existing debt of about $750,000.
Kathy Hueske, of the newly formed Richardton Healthcare Foundation, said fundraising is vital.
"In order for us to reduce the debt - which, when we start the nursing home we don't want to have any more debt - the only way we are going to be doing that is raising the funds," Hueske said.
Opdahl said the hospital will change some services, ending its 24-hour emergency and acute care.
"Over the last several years, we've seen our acute care go down substantially," Opdahl said. "It's just not there, the business. We're still going to provide lab and x-ray, it just really comes down that we are going to lose our emergency services."
Catholic Health Initiates is giving the Richardton hospital a $500,000 grant, of which $450,000 will remain in escrow until St. Joseph's receives the critical access designation. The funds will be used for new services.
"St. Joseph's Hospital has also agreed to forgive about $72,000 that we have owed to them for many years," Opdahl said.
Other issues in the hospital's conversion include the ownership of the Rural Health Clinic.
"When we convert to a nursing home, the state law only allows physicians or hospitals that employ physicians to own a clinic," Opdahl said. "So essentially, we are going to be pursuing a not-for-profit organization or a medical clinic that will be owned by physicians and will enter into a management agreement with Richardton Hospital."
Information from: The Dickinson Press, http://www.thedickinsonpress.com
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