Bristol Health recently issued a financial report indicating it had just under 17 days of cash on hand as of May 31.
Bristol Health, based at 41 Brewster Road, includes Bristol Hospital and a network of about 100 healthcare providers in 20 locations in central Connecticut.
The report, dated May 31, outlines the system’s financials and was filed with the Municipal Securities Rulemaking Board (MSRB) Electronic Municipal Market Access (EMMA).
The report showed 16.89 days of cash on hand (DCOH) as of the end of May. The report shows Bristol Health projects its DCOH to climb to 22.14 by Oct. 31, 2023, and to 28.28 by April 30, 2024.
The days of cash on hand is a metric typically weighed by lenders and can provide insight into a health system’s financial status and liquidity.
Kurt Barwis, president and CEO of Bristol Health, said Monday it has successfully negotiated a waiver of its cash days on hand deficiency with its bondholders and received support from the state of Connecticut.
“We, as a smaller value-based system, are optimistic that we have a road map back to, and will achieve financial sustainability,” Barwis said.
In the state fiscal year that begins July 1, Bristol Health will receive $2.5 million, and another $2.5 million when its financial plan is presented to and accepted by the state, according to Barwis. In the following year, it will receive $2 million. In total, this state support amounts to an estimated 14 days cash on hand, he added.
“While FY 2022 was quite difficult from a financial perspective, we continue to provide extraordinary care and quality outcomes at the highest levels of reliability,” Barwis said, via email. “We have engaged two national firms, one with boots in the ground since March 2023, to assist us in regaining and sustaining future financial success. Our more recent interim results have improved, notably May 2023 was cash positive.”
The May 31 report showed $137,913 in cash and cash equivalents, plus $8.3 million in unrestricted investments, for a total of $8.45 million.
Bristol Health faces challenges such as a 73% government payer mix, state Medicaid reimbursement rates “hovering at the 5th lowest in the nation,” and an “extraordinarily high harmful Medicare Advantage penetration,” according to Barwis.
Despite its challenges, Barwis noted that the health system has continued to build its core services, including adding difficult-to-recruit specialists in areas such as endocrinology, psychiatry and rheumatology.
