Hospital administrators said that from Aug. 2008-Oct. 2009, the hospital used the pension fund money to help with payroll and other expenses, according to the report.
Under the hospital’s pension plan, employees put 7 percent of their salaries into a savings account, and the hospital was supposed to match 4.5 percent of participating employees’ salaries and put that amount into the plan. However, during that period, the hospital did not make any matching contributions, according to the Bee. Overall, the hospital still owes $3 million to vendors, $1.4 million to the pension fund and $25 million in bonds it must repay over time.
The hospital is also losing $100,000 a month, according to the story. Board members are contemplating partnering with a larger hospital system to turn around its financial situation.
Read the Fresno Bee report on Sierra Kings District Hospital.
