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Fri February 18, 2011
Landmark has limited cash on hand
By MEGAN HALL
Providence, RI – There's a good reason why Landmark Medical Center officials are rushing to find a buyer for the Woonsocket hospital- it's running out of money.
Documents on Landmark's reserves show that the hospital has only 2.3 million dollars of cash on hand.
That might sound like a lot, but compare that to its operating expenses- $988,179 in payroll a week and $800,620 in other expenses.
Landmark Spokesman Bill Fischer says the hospital is not in any way, shape or form in danger of closing.
"I have every confidence that we will emerge this year with a successful acquisition partner, a successful hospital conversion act and emerge from receivership this calendar year," he says.
Fischer says cash on hand is only one way to judge the financial health of the hospital, and the medical center has successfully met payroll since it went into receivership two and a half years ago.
Fischer also says the cash on hand does not reflect a backlog in Medicare payments. Once that money comes in, Landmark will have an extra $400,000.
Fischer says Landmark's money has fluctuated- going up some months and down for others, for various reasons, but according to past document on Landmark's finances, overall the cash on hand has declined since May of 2009, from 6.7 million that month down to 4.5 million in July of 2010 and 3 million in December of 2010.
He says Landmark has been entirely transparent with state officials about the hospital's financial situation.
Note: This story has been amended from the original version to show that Landmarks may have limited reserves, but it also has money coming into the system. Those reserves fluctuate and that this story is based on just one financial report.
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