You are here: HomeNewsFront Page News ArticlesGRMC's Allred and Otero answer questions

GRMC's Allred and Otero answer questions

The Grant County Beat, on Wednesday, met with Gila Regional Medical Center Chief Financial Officer Elizabeth Allred and Chief Operations Officer Dan Otero to get some answers to clarify things for the community.

The first thing Allred told the Beat was that the hospital is in the black with about $80,000 net income in the first two months—July and August—of the current fiscal year 2014.

"We lost about $9 million last year," Allred said. "Most of it was related to the loss of the sole community provider funding, as well as from the dropping of other programs such as Medicare TOPs (transitional outpatient payments), which ended in mid-fiscal year on Dec. 31, 2012.

"The reality is that hospitals are going to get squeezed," she said. "The budget for this year was put together with a lot of assumptions, but we didn't have good numbers. There are too many unknowns. The Human Services Department still has not released numbers for next January. We are continuing cost-cutting measures trying to get the hospital fit and trim."

At the most recent GRMC board of trustees meeting, Allred said it is a possibility that a revised budget would be submitted to the state within the next few months, when better numbers are known.

"We are running the hospital like a business," Otero said.

"When reimbursements are cut so much, we are looking everywhere for efficiencies," Allred echoed.

"Our first responsibility is to the community and our caregivers," Otero said.

Allred said in response to what she had heard about the cutting of the Planetree program that "we have always been about patient-centered care, even before we chose to align with the Planetree program."

To a question about whether any price increases were expected at the hospital, Allred said GRMC had instituted price increases Aug. 1 of this year, and she did not anticipate any additional increases in the near future.

"We are having meetings to make sure that our prices are property aligned with our services," Otero said. "More public/private partnerships are happening in health care. We must ensure our pricing structures are competitive while simultaneously creating a reimbursement structure that facilitates a positive bottom line for long-term viability.”

Allred, in response to another question said GRMC still has substantial discounts for those who self-pay for services. "Anyone who pays up front gets 50 percent off. Those discount rates decrease over time. And if we have miscalculated the cost, we refund the money quickly."

Otero confirmed that the hospital is behind in sending out bills to patients, insurance companies, and other payers, such as Medicare and Medicaid, not because of the billing department, but because of a shortage of two coders. "Billing can't send anything out until it is coded. There is a national shortage of coders, so we are partnering with a company as a short-term strategy until we can hire full-time coders for the hospital."

Allred explained that the sole community provider funding was a subset of Medicaid. "There may be a potential increase in Medicaid rates, but it is not yet official, so we don't know the particulars."

"Our biggest opportunity is becoming more efficient in the hospital," Otero said. "For services that get a positive financial margin, we want to increase volumes."

"If things in the hospital are not efficient, we're looking at improving the process," Allred said.

"Aggressively," Otero said. "An inefficient process costs more money to operate."

Allred agreed and said that standardizing systems across various department and disciplines creates efficiencies.

"The regulatory stuff we have to abide by," Allred continued. "We are a government entity, so we have a fiduciary responsibility for taxpayers' money. It's not our money. We are taking care of assets that belong to the community. Regulatorially, it adds costs, but it's a safeguard for us and the community."

Otero said a special board meeting would be set to get the contracts going on the linear accelerator in the Cancer Center as soon as possible to lessen the impact to the community.

"It will be a several month process, but for patient impact, our goal is no more than 45 days," Otero said.

"We will work with patients to minimize the impact on them," Allred said.

"The new linear accelerator we are going to install is the best of the best," Otero said.

Allred said the funding comes to the hospital from the state cigarette stamp tax.

The next regular GRMC board of trustees meeting will take place at noon, Friday, Oct. 25, in the GRMC Board Room.

Join GCB Three Times Weekly Updates

Welcome to Three Times Weekly Updates! You will be subscribed to email notifications with links to recently posted articles.
You can unsubscribe anytime. We never share or rent your email to anyone.

Fire Alerts

Editor's Note

Twice lately, someone has used one of MY photos, TAKEN by ME, without attribution or payment to me or the Beat. Remember that ALL PHOTOS ON THE SITE ARE COPYRIGHTED BY THE PHOTOGRAPHER. All content is also automatically copyrighted to the creator, when it is posted. 

For all you non-profits out there who hold regular fundraisers and want to thank your supporters, the Beat has a new flat rate of $20 plus GRT for Thank You Ads, which are posted under Community. Thanks for supporting the Beat.

The Beat is very pleased and excited to announce that it has an intern, Alexis Rico, who is studying journalism at New Mexico State University. Please welcome her. We will be experimenting together on some new ways to provide the news to you. We look forward to your comments to This email address is being protected from spambots. You need JavaScript enabled to view it. .

Thanks for being a Beat reader!

The Beat thanks all of you who have become friends of the Beat by sponsoring pages.

We have added a new category under Sponsors on the menu—Local businesses. You and your business can benefit from the exposure by contacting the Beat at This email address is being protected from spambots. You need JavaScript enabled to view it. . Someone will contact you for an interview and to take photos. The cost for the sponsorship is $100, and you can continue the relationship by advertising your business for a longer term. The longer the term, the better the discount you receive.

The Beat is now posting legal notices for area governmental agencies. Check under the menu item Community to find Legals for what's happening in the area in the way of meetings and other legal notices.

You may have noticed a blue button on the upper left side of most pages. It says Sponsor GCBTo help defray ever-increasing costs of the Beat and to prevent the requirement for paid subscriptions, the Beat is asking you to choose an amount you want to pay on a one-time or regular basis to SPONSOR a page or feature that you rely on. 

If you subscribe to the Join GCB Three Times Weekly Updates option on the left side of this page, you will be subscribed to email notifications with links to recently posted articles.

Comics are now available. As the editor, I chose my favorites first--B.C. and Wizard of Id. The Beat is seeking sponsors for these comics and for your favorites, too. Contact This email address is being protected from spambots. You need JavaScript enabled to view it.  for rates. 

Check Out Classifieds.

It's really easy to check to see if there's a classified ad. Just click on Classifieds in the blue menu and the page will open letting you know if there is a classified ad. Remember that your buying classified ads gives you a wide readership, as well as supporting the Beat.

Post YOURS for quick results!

Consider the Beat your DAILY newspaper for up-to-date information about Grant County. It's at your fingertips! One Click to Local News.

Thanks for your support for and your readership of Grant County's online news source—www.grantcountybeat.com.

Go to top