Bartlett Regional Hospital’s board voted on Wednesday to incrementally pay back $2 million to the City and Borough of Juneau over the next three years.
Last fiscal year, the Juneau Assembly transferred the money to the city-owned hospital when it was facing a multimillion-dollar financial crisis. It was not a loan, and the hospital was not required to pay any of it back.
But, Bartlett CEO Joe Wanner wants to pay the city back anyway and proposed the idea at the meeting. He said the hospital is currently in a much better place financially and can afford to do it. The hospital has been making steady positive income for the last eight months.
“I don’t see us going backwards from this point… barring some kind of disaster,” he said.
Last spring, hospital leaders announced that they needed to solve a multimillion-dollar budget deficit or the hospital would be forced to close its doors. The hospital’s board corrected course by cutting back on staff and controversially closing programs it said were draining money.
Wanner said the city is now facing its own issues like financing glacial outburst flood mitigation. He said giving back the money would show the hospital’s support to the community.
The board approved the pay-back plan unanimously, but some members were hesitant at first. Board member Lisa Petersen worried that the move could come back to bite the hospital if it finds itself in a tight spot again.
“I just don’t want us to be in a situation where six months later we’re asking for money back because we’re struggling,” she said.
The hospital’s financial outlook has improved, but there are still challenges to address. Last week at a summit, Wanner said it continues to struggle with recruiting and retaining staff. And, a recent survey shows staff lack confidence in management and leadership, and are experiencing burnout and turnover.
The hospital will begin its first of three payments of $667,000 when the next fiscal year starts in July.
Correction: This story has been updated to reflect that board member Lisa Petersen expressed some hesitation about the decision, not Deb Johnston.