Challenge
In 2022, Scotland County Hospital, a Critical Access Hospital (CAH) in Missouri, faced significant financial challenges including declining revenue, an outsourced billing department, and the potential closing of its obstetrics (OB) department. With only eight days of cash on hand, the hospital’s leadership sought expert guidance to maintain operations and secure a sustainable future.
Stepping into the role of CEO just as Stroudwater began its engagement, Meagan Weber saw the partnership as an invaluable opportunity to assess and address the hospital’s financial and operational challenges. Stroudwater’s expertise in rural healthcare turnarounds provided the structured, data-driven insights needed to set Scotland County Hospital on a path toward stability and success. With deep expertise in rural healthcare, financial turnarounds, and strategic planning, Stroudwater developed a plan to not only address immediate financial concerns but also create a roadmap for long-term stability and success.
Process
Stroudwater implemented a comprehensive approach tailored to Scotland County Hospital’s unique needs. Key steps included:
- Comprehensive Financial and Operational Assessment: Conducted an in-depth review by interviewing department supervisors, analyzing financial and operational data, and identifying inefficiencies.
- Action Plan Development: Based on the analysis, Stroudwater formulated targeted action plans with clear, measurable goals to address financial and operational concerns.
- Board Engagement: Presented findings to hospital leadership and board members, ensuring alignment and accountability in executing the plan.
- Cost Report and Revenue Enhancements: Identified opportunities in the hospital’s cost report, securing an additional $500,000 in reimbursements, and conducted a Charge Description Master (CDM) analysis to optimize pricing structures.
Results
The partnership between Scotland County Hospital and Stroudwater Associates was transformative, with outcomes including the following:
- Financial Stability: Increased cash on hand from 8 days to 40 days over two years.
- Revenue Growth: Secured an additional $500,000 from cost report amendments and improved hospital pricing strategies.
- Operational Efficiency: Developed an approachable strategic plan that empowered hospital leadership and staff.
- Sustained Improvement: Scotland County Hospital has since re-engaged Stroudwater to focus on the quality of its patient care, demonstrating continued confidence in their strategic partnership.
Impact
Scotland County Hospital was at a crossroads—without decisive action, its future was uncertain. Stroudwater’s expertise in rural healthcare and its strategic intervention were critical in preventing potential closure. By swiftly addressing financial instability and operational inefficiencies, Stroudwater helped stabilize the hospital’s finances and positioned it for long-term viability.
Through expert financial restructuring and strategic planning, Stroudwater helped the hospital navigate a precarious situation and emerge stronger. What began as a crisis intervention evolved into a long-term partnership, with Scotland County Hospital and Stroudwater continuing to work together on quality improvement initiatives to enhance patient care and operational excellence.
Testimonial
“When I stepped in as CEO, Scotland County Hospital was facing serious financial challenges. Stroudwater’s deep understanding of rural healthcare and strategic planning provided not only the expertise we needed but also a clear roadmap for recovery. Their structured, collaborative approach empowered our leadership team, ensuring buy-in at every level and giving us the confidence to move forward. Thanks to their guidance, we not only stabilized our financial position but also set the foundation for long-term success.” – Meagan Weber, CEO, Scotland County Hospital
