The Wrangell Medical Center has serious financial problems, according to the hospital’s auditor who told the hospital board Wednesday.
The independent audit shows the hospital’s total assets dropped by about 40 percent from the previous fiscal year.
Wrangell Medical Center also has less than a month’s worth of operating cash on hand. It is recommended that hospitals of this size keep about six months of cash on hand.
The hospital took a hit from the $3.5 million spent on the previous attempt to build a new facility.
The medical center is also attempting to reduce $4.4 million in accounts receivable. A faulty Medicaid system is largely responsible for that aspect of the hospital’s financial troubles.
Despite the lack of funds, some hospital board members and staff expressed the need to push forward with plans for a new hospital.
