The Kenai Peninsula Borough Assembly voted to appropriate funding from the Central Peninsula Hospital Plant Replacement and Expansion Fund to replenish Central Peninsula General Hospital’s 90 days cash on hand. The Borough entered into an operating agreement with the hospital for operation and other medical facilities as well as to provide other healthcare programs and services on a nonprofit basis in order to ensure the continued availability to the service area residents.
According to a section on finances, paragraph (a) on Operating Revenue states that, on a quarterly basis, the Central Peninsula General Hospital shall transfer all cash on hand in excess of the operating reserve amount to the Borough for deposit into the Central Peninsula Hospital Plant Replacement and Expansion Fund. Also, if the cash on hand is less than 90 days at any time, than the Hospital may request that the Borough authorize the transfer of an amount to maintain the operating reserve amount.
Assemblyman Tyson Cox:
“We did discuss this in length at our last meeting and what this ends up doing is they will be repaying advanced Medicare and what it equates to is about $17 million that will be changed hands.”
As of May 3rd, the operating reserve reportedly was below 90 days ‘cash on hand’ in the amount of $17,008,123, just over 37 days, due to the hospital’s repayment of advance Medicare funding on April 6th.
Ordinance 2020-19-33 passed the consent agenda of the Kenai Peninsula Borough Assembly and Central Peninsula Hospital is tasked with providing an update on the cash reserve status shortly after June 30th.
