Wagoner Community Hospital Delays March 13 Paychecks Citing Soft Business Deposits

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WAGONER, OKLA (KTUL) — Employees at Wagoner Community Hospital anticipated receiving their March 13 paycheck but were instead notified by email that payroll would be delayed.

News Channel 8 contacted Wagoner Community Hospital for an interview. Hospital administrators declined an interview but provided a statement attributing the payroll delay to what they described as soft business deposits during the most recent payroll cycle.

Soft business deposits refer to payments from insurance companies, patients, or government reimbursements.

According to the hospital's statement, payer deposits can fluctuate. They also confirmed that a wire transfer would be sent first thing Tuesday morning to initiate direct deposit payments for their associates.

"Typically, what happens is that a hospital will treat a patient, file their insurance, and it may be that the insurance company only pays 60 cents on a dollar that’s owed," said Oklahoma Hospital Association President Rich Rasmussen.

In a local Wagoner Facebook group, several employees shared that they received an email offering a temporary $200 advance while waiting for their paychecks.

News Channel 8 was informed that this advance would be deducted from a future paycheck once payroll is processed.

This is not the first time the hospital has faced payroll issues.

Last year, the Wagoner City Council held an emergency meeting and approved a $350,000 loan to help the hospital cover payroll after federal funding was delayed. The hospital has since repaid the city.

Rasmussen explained that delayed payments from insurance companies create financial pressure for hospitals nationwide. Hospitals may wait months to receive full payments while still covering expenses such as staffing and payroll.

"More and more resources are spent trying to collect that money, and hospitals then struggle to ensure they can meet all of their obligations because the payments are delayed," Rasmussen said.

Wagoner City Councilor Nathaniel Wilson issued a statement on Facebook, saying, "Employees who have performed their duties and worked their scheduled hours have the right to receive the wages they have earned."

Wilson also stated he is seeking additional information and has requested an emergency meeting to address concerns about the payroll delay.

When asked if any employees failed to report to work, hospital officials said they do not have an exact number but believe fewer than 10 out of 200 associates did not show up.

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