JRMC Board Discusses 2025 Deficit, Winter Weather
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by Stephanie Baker
The Johnson Regional Medical Center Board of Directors met on Thursday, Jan. 22, and discussed the $3.4 million year-to-date loss for 2025 as reported by Whitney Stepp, who has recently returned to JRMC as chief financial officer (CFO).
Stepp’s report mentioned many positives for 2025, including improved cost capturing due to the Cerner system, but ended with the $3.5 million deficit.
CEO Tommy Hobbs stated “a lot was happening in 2025,” noting high expenses, the new Cerner system implementation costs, key staff turnover, high contractual staffing, and dual costs, as contributing factors for 2025 year-to-date loss numbers. Negotiations with insurance provider Blue Cross and Blue Shield was also cited as a contributing factor, with Hobbs noting while not as severe as the negotiations with United Healthcare, the situation had left the hospital uncompensated for services provided. He stated the hospital will continue to work to lower costs and raise revenue.
The budget and capital committee members remained positive on the financial outlook of the hospital, with Clayton Caldwell stating the financials are “headed in the right direction,” and Darrel Wheeler commenting on how happy the committee was to have Stepp return as CFO.
JRMC Taking Winter Weather Precautions
Hobbs stated he had been in contact with Chairman Dr. Rickey Casey, who also serves as Johnson County director of emergency management, and received information from the state that the county could receive 3.5 inches of sleet and a foot of snow during the snowstorm predicted for Jan. 23-24.
Hobbs stated all essential staff would stay at the hospital through the storm to be able to meet the needs of patients, stressing the severity of the storm. He stated the closing of non-essential offices for Monday was likely.
“We have done what we can to prepare,” said Hobbs.
Alliance With Arkansas Children’s Hospital
Dr. Shannon Case shared she recently attended a state collaborative centered around a significant pediatrics shortage in hospitals statewide. She said despite a dire outlook statewide, JRMC was praised for meeting the needs of pediatric patients.
JRMC will also soon begin its alliance with Arkansas Children’s Hospital, which will provide telemedicine consultations of pediatric cases to allow patients and their families to receive the highest level of care while remaining local. Hobbs reported a ribbon cutting celebrating the alliance will take place in March, however specifics will be announced at a later date.
Other Matters
-Hobbs reported the state received a large portion of federal funding dedicated to rural health. The federal initiative will distribute $50 billion over the next five years to rural health issues nationwide. Arkansas has been awarded $209 million for 2026. JRMC has previously submitted ideas and potential plans for rural health initiatives to the state. Hobbs said there is “a lack of clarity and ambiguity” as to the application process to receive this federal funding, however the opportunity is “worth a lot of focus,” he said.
-Hobbs reported JRMC continues to work toward physician recruitment with an interview for a general surgeon candidate scheduled for Jan. 26, weather permitting.
Read this story and others in the Jan. 28 issue of The Graphic, available online and at businesses throughout Franklin and Johnson counties. Subscribe or donate here to support more hometown journalism.
