• Entire Star Valley Health town hall can be heard here – 

Addressing a $3.5 million shortfall in funding this year, Star Valley Health took the hospital’s message to 4,600 homes late in April about what had occurred and offered direction for the coming year.

Star Valley Health CEO Dan Ordyna opened the meeting summarizing the problems the hospital has faced in the past year. He said the shortfall in funding has been traced to three basic reasons.

The problems were tracked to increased insurance rates, the Alpine expansion project and an error in the hospital’s accounting system.

First, Ordyna noted sizable increases in employees health care costs. “Star Valley Health is self insured,” he explained. “We have paid a $4 million increase, or 50 percent increase in one year.”

Second, the Alpine facility opened in January. “We opened a beautiful 10,000 sq. ft. expansion in Alpine with an emergency room, two operating rooms and a cardiac Catheterization lab,” Ordyna recalled. “It takes time for revenue to catch up with start-up costs.” He also noted higher labor costs with the Alpine project.

The third point centered on accounting. “We discovered an error in our accounting system and our electronic medical record system, showing a $3.5 million over statement,” Ordyna explained.

“When you combine these three challenges together, we need to assess our growth and cash position,” he advised.

He said all of the challenges will be addressed, “head on.”

Looking back at recent years Ordyna remained optimistic about the growth of the hospital.

“Star Valley Health has seen tremendous growth, recruiting 25 providers, and plans for more services in the future.”

He continued, “We have added 200 new jobs with significant pay increases over this time period.”

Ordyna concluded, “As of today, we have 60 days of cash on hand, and  earnings indicate a positive fiscal year.” He added, “Signs show it is starting to stabilize.”

The hospital is also implementing operational changes with the billing system.

Ordyna thanked the communities for working with the hospital.

“What we do at Star Valley Health impacts all of your lives.”