LAS VEGAS (FOX5) -- The nonprofit that administers health care plans for more than 35,000 teachers in the Clark County School District says it is now trying to figure out how to pay $43 million owed to medical providers for past treatments.
Teachers Health Trust is a fund negotiated by the school district and the Clark Count Educators Association to provide health care for CCSD teachers. The district announced in May that it would be hiring a new CEO to help keep teachers' health plans afloat.
Current CEO Tom Zumbtobel said he has been with the nonprofit for two months, and that he quickly identified that the nonprofit would need to make cuts in order to carry on.
"The first thing we had to do is identify the road to recovery," Zumtobel said. "It required us to cut administrative costs here by almost $6 million per year," Zumtobel said in an interview on Monday, adding that the cuts provided $25 million in opportunity for savings.
"We have to identify with the past debt that we've had, that I basically came in and inherited. How do we reconcile this money we owe the providers?" Zumtobel said. "We have some providers turning teachers over to collections for debt that belongs to the Teachers Health Trust."
The CEO added that doctors "have every right to be frustrated" as they should have been paid; however, they should not be contacting patients for collections. Zumtobel said Teachers Health Trust "absolutely would" figure out how to get the providers paid, it just needs to identify where the money will come from.
"The Teachers Health Trust is working very hard to reconcile some of the problems that we have created in the past, and we are working to get that rectified for providers," he said.
Zumtobel said providers should reach out to Teachers Health Trust with concerns about related claims.
Editor's note: A previous version of this story said administrative costs needed to be cut $600 million. Zumtobel said he misspoke; the figure was actually $6 million.