OHH Posts Profit; $3.5M in New Market Credits

Olney Hamilton Hospital is off to a strong start in its 2026 fiscal year, showing a $263,000 profit through July— $780,000 better than the same period last year, Administrator Mike Huff told the hospital board of directors on July 25. Net income rose 23 percent while expenses increased by just 8 percent.

“Things are cranking,” Mr. Huff said, crediting the turnaround to new product lines added over the past year.

He announced the hospital is preparing to close on new market tax credits that will net $3.5 million once the hospital receives needed permits from the City of Olney for the new facility. Plans are also underway to apply for additional credits to fund converting the old hospital building into a support services facility.

Board member Lonnie Rue reported that gross patient billings reached $20.9 million, up 25 percent, or $4.2 million, over last year due to increased patient volume and select price adjustments. However, about 66 percent of billings are written off for bad debt and charity care, he said. Operating expenses rose to $7.9 million, but Mr. Rue noted, “not as much as revenue.”

The hospital’s year-todate operating loss stands at $37,000, a dramatic improvement from last year’s $783,000 loss at the same point. A consultant has been brought in to help improve collections and reduce write-offs.

Board chairman Dale Lovett praised the hospital’s progress.

“The lines of service that we’ve changed have turned out very well,” he said.

The board also discussed ongoing challenges with insurance reimbursements, particularly Medicare Advantage denials.

“It’s gone from thousands to millions of denials in the system,” Mr. Huff said, noting the burden on small hospitals lacking staff to fight delayed or denied claims.

The board emphasized continued focus on securing approvals and timely payments to sustain the hospital’s upward financial trend.