Federal sequester might cost Winneshiek Medical Center $500,000

It's been difficult for local officials to figure out the impact of sequestration cuts that have gone into effect on the federal budget.  But Winneshiek Medical Center Chief Financial Officer Lynn Luloff has been trying to project the impact of the federal cuts on the hospital.
 
She says the biggest potential impact on Winneshiek Medical Center will come from Medicare cuts.  The sequester legislation would reduce Medicare reimbursement by one percent to Critical Access Hospitals such as WMC.  Luloff says that would amount to a $300,000 annual impact.
 
Other Medicare cuts would impact physician services reimbursements, as well as money for medical equipment and electronic health records.  Those funds would be cut by two percent, resulting in a $200,000 annual loss of revenue, according to Luloff.
 
The hospital would begin feeling the impact of the sequester on April 1st.  Luloff says if the sequestration were left in effect, Winneshiek Medical Center would have a total revenue loss of $500,000 a year.