Fairfield Memorial Hospital is stabilizing financially after bringing in new leadership from Deaconess Health Systems. CEO Andy Flemer and CFO Jim Basch joined the Evansville-based system through an affiliation arrangement, and the hospital’s leadership says the alliance is driving a sustained turnaround. The hospital, one of Wayne County’s largest employers with 385 workers, had struggled with cash flow just a few months ago, reporting only one day of cash on hand. Since the duo took the helm, cash reserves have climbed to as many as 41 days, helped by improved revenue-cycle management. A key milestone came with a $4 million Medicare settlement, awarded after changes in how Fairfield Memorial identifies eligible services and submits claims for payment. The influx has allowed the hospital to establish a minimum cash reserve of about $2.5 million to fund future improvements and potential employee pay adjustments. Flemer acknowledged that some staff pay remains below industry standards and said addressing compensation is a priority over time.
In addition to financial gains, the hospital is expanding its service offerings. Fairfield Memorial struck an agreement with inReach Health of Broomfield, Colorado, to provide “fractional surgical specialists.” Beginning soon, urology services will be offered three to four days per month, followed by planned orthopedic and gynecology services. The program is designed to grow based on patient demand, with a general surgeon expected to join Dr. Lauren Williams and Misty Stone PA for on-site surgical coverage seven days a month, plus on-call support.
The expansion comes as the hospital evaluates how best to utilize space tied to its building housing additional services. Flemer envisions using the space for physical therapy and other outpatient offerings, though some portions of the building remain underutilized. Daily safety and readiness meetings are part of the hospital’s proactive approach to preventing problems before they arise.
Another area of attention is the Skilled Care Nursing unit. Earlier this year, the board considered selling the unit due to Medicare reimbursement challenges related to the unit’s location inside the hospital. Flemer and Deaconess officials are pursuing paperwork changes to align Medicare policies with the current setup, avoiding the need to relocate the unit. For now, there are no plans to sell.
The SIPCA building, purchased years ago for orthopedic and physical therapy use, remains largely empty after a plan to move services there never fully materialized. Flemer has emphasized a hands-on management style, describing daily “safety huddles” and a commitment to staying visible to employees as keys to navigating recent changes.
On the leadership front, Flemer, who previously led Arkansas Valley Regional Medical Center in La Junta, Colorado, now resides in Fairfield. Basch, who splits time between Fairfield Memorial and Deaconess Illinois Crossroads Hospital in Mt. Vernon, continues to coordinate financial operations across the affiliated system.
Looking ahead, hospital officials say the pairing with Deaconess is already yielding positive momentum, with service expansions and a stronger financial footing expected to continue shaping Fairfield Memorial’s outlook in the months to come.