Wrangell Medical Center is short on cash to cover daily operations. The assembly will make a last-minute vote whether to issue a $250,000 line of credit at Tuesday’s regular meeting.
According to the line of credit request from hospital CEO Robert Rang, the medical center says the lack of cash is due to delays in Medicaid payments and recent one-time expenses. The hospital also is waiting on $2 million in bills not yet paid.
The hospital’s cash on hand ebbs and flows. The hospital had over $600,000 in August, according to the medical center’s cash flow statement. In October that dropped to less than $200,000.
The credit would accumulate no interest and come from the borough’s general fund. Repayment would not start until the hospital produces enough funds to back 30 days of operation.
If the assembly approves the credit, the check would be cut the next day. Hospital CEO Robert Rang declined to comment until he meets with the assembly Tuesday evening.
The borough cut a similar deal back in 2015 to maintain medical operations. That credit was paid in full last June.