SYLACAUGA — Coosa Valley Medical Center will be seeing a $1.4 million annual increase to its budget Oct. 1.The hospital was recently approved for Rural Referral Center Status and reclassified into the Birmingham-Metro wage status for Medicare reimbursement by the Centers for Medicare and Medicaid Services.
CVMC Chief Executive Officer Glen Sisk said 46 percent of the hospital’s business is Medicare and the administration is excited to have this reclassification and begin receiving the additional Medicare reimbursement, especially after being overlooked by CMS when the hospital initially applied for reclassification last year.
“CMS came back and said we did not qualify. They had made an error and we would not be receiving the $1.4 million,” Sisk said. “That was unexpected and a disappointment to not have that added financial benefit, especially on the heels of building a new hospital.”
Sisk and the hospital board called on U.S. Rep. Mike Rogers and Sen. Richard Shelby for help in rectifying the situation and this time got the response they were looking for.
“We don’t think we could have found a favorable solution,” Sisk said. “That’s why I say, arguably, absent of their involvement, this would not have happened.”
The problem arose over hospital provider numbers, which every health care facility has. Sisk said once it was known the new hospital would be built, the board decided that instead of retaining the provider number from Baptist Coosa Valley, the new entity would apply for a new number.
“Getting a new provider number was a wise move on the part of our board, but that was our hiccup in the process,” Sisk said.
The necessary paperwork and documentation was sent off for reclassification into the Birmingham-Metro status with the new provider number, but while it was recognized by the regional office in Atlanta, it was not recognized by the CMS.
“Because Coosa Valley Medical Center was unfairly and retroactively reclassified by the Centers for Medicare and Medicaid Services, the hospital lost approximately $1.4 million annually,” Shelby said. “I was pleased to work with CMS on the hospital’s behalf to help Coosa Valley rectify this situation and regain its rural referral status. This will allow Sylacauga’s residents to preserve their access to quality health care.”
With the two years lost since CVMC initially applied, Sisk said the facility has missed out on about $3 million that would have been reinvested into the hospital through health care, equipment and recruiting physicians, and with the news coming at the same time as the building of the hospital, the CVMC community has had to make sacrifices.
“It certainly has been detrimental that the $3 million investment has not been made because this hospital is viable and vibrant,” he said.
Rogers said Sisk and the hospital were helpful in explaining the situation and helping him and Shelby understand.
“It was abundantly clear to CMS that it was their error, the problem we ran into was that they didn’t want to fix it,” Rogers said. “… We’re very happy we were called on and happy to help. It’s the perfect example of how when we go and talk with mayors, city councils and community members and ask if there’s anything we can do to help. The best way we can help is through solving problems like this. This hospital is vibrant and vital to the community and I’m thrilled Sen. Shelby and I were able to help.”
Sisk said now that the additional money will be coming in, CVMC hopes to move forward on some projects already planned, such as renovating the transitional care unit and the nursing home facility, as well as beginning a new geriatric psychiatric service and ensuring its team members and physicians are being competitively rewarded.
“Operating health care services is a very expensive endeavor. We want to ensure that the health care services in Sylacauga are as good as you can find anywhere,” Sisk said. “We also want to be a good community steward and want people to view Coosa Valley Medical Center as their community hospital. … There is an operational responsibility and also a community obligation we have here as a partner in Sylacauga.”
