ROCK SPRINGS — September, the third month of the Fiscal Year 2018, was the first operations gain that Memorial Hospital of Sweetwater County has seen in 17 months, according to CEO Irene Richardson.
The budget anticipated an even larger gain for September, coming in at $150,341 under what was expected.
The hospital had a busy month, said Richardson, due in part to the start of flu season. Also, expenses decreased in September and average length of stay has decreased.
Richardson said in a document titled ‘Narrative to the September 2017 Financial Statement’ that “We continue to see the effect of the recent cost savings in the new fiscal year. As of September, the daily cash expense is $210,000, down from a high of $236,000 in the last fiscal year.”
See some of the main September financial facts at a glance. Figures were presented at tonight’s Memorial Hospital of Sweetwater County Board of Trustees regular meeting.
The Bottom Line for August
- The bottom line from operations for September was a gain of $137,051, compared to a gain of $287,392 in the budget. This yields a 1.95% operating margin for the month compared to 3.83% in the budget.
- The YTD Net Operating Loss is $560,385 compared to a loss of $130,044 in the Budget. This represents a YTD Operating Margin of -2.69% compared with -.59% in the Budget.
- The Total Net Gain for the month was $462,588, compared to a gain of $482,497 in the budget. The YTD Total Net Gain is $198,120, compared to a gain of $455,271. This represents a YTD Total Profit Margin of .95% compared with 2.06% in the budget.
- Debt service coverage came in at 3.12. The existing bond covenants require that the hospital maintain debt service coverage of 1.25 for compliance.
- Average Inpatient Census for the month was 11.1; under budget and prior year by 6.4.
- YTD Average Census is 11.5 compared to 18.5 in the Budget and 18.5 in the prior year.
- Inpatient Surgeries were 13 under budget at 30 and Outpatient Surgeries were under budget by 17 at 141. There were 6,136 Outpatient Visits, under budget by 622.
- Total ER Visits were 1,319, which was under budget by 101.
- There were 32 newborns in September, under budget by 22. Births are under budget by 23 year to date.
- Revenue for the month was $13,019,611, under budget by $661,385.
- Inpatient revenue was under budget by $1,124,475, Outpatient revenue was over budget by $573,233 and the employed Provider Clinic was under budget by $110,143.
- YTD Total revenue was $39,127,132, under budget by $865,006. Inpatient revenue is under budget by $3,409684, Outpatient revenue is over budget by $2,992,161 and the Provider Clinic is under budget by $447,483.
- Memorial Hospital is experiencing a shift from inpatient care to outpatient care. YTD inpatient revenue is 22% of total revenue compared to 30.2% in the prior year.
- Net patient revenue for the month was $6,903,809, under budget by $457,547. YTD Net patient revenue was $20,482,740, under budget by $1,122,206.
- Deductions from revenue were booked at 47% for September compared to 46.2% in the budget and 42.3% for the prior year. YTD Deductions from revenue are 47.7%, compared to 46% in the budget and 43.8% for FY 2017.
- Total Expenses for the month were $6,898,779, under budget by $325,534.
- Salary & wage, fringe benefits, physician fees, repairs and maintenance, other operating expenses, and deprecation were under budget for September.
Over Budget Expense Categories
- Contract Labor – This expense is over budget by $41,522. OB, surgery, emergency room, and ultrasound are over budget for the month.
- Purchased Services – This expense is over budget by $45,725. Legal fees are over budget by $92,206 and are projecting to over $674,000 for the year.
- Supplies – This expense is over budget by $125,186. Med/surg supplies and drugs are over budget for September.
- Utilities – This expense is over budget by $11,470. Telephone expense is over budget by $10,542 due to final payments to Qwest to close out the old system.
- Operating Cash at month end was $12,740,173, up $404,846 from August.
- Collections for the month of September were $6,281,763.
- The Days of Cash on Hand for September are at 106, up 1 day from August due to the decrease in expenses. The existing bond covenants require that we maintain 75 days of cash on hand for compliance.
- Gross Receivables at month end were $18,884,916, up $894,923 from the prior month.
- Net Patient Receivables at month end were $10,340,293, up $473,047 from last month.
- Days in Receivables are 45 for September, up 1 day from August.
Outlook for September
Inpatient volumes, including surgeries and births are down, projecting to come in under budget. Memorial Hospital continues to experience a shift from inpatient care to outpatient care with inpatient revenue and patient days being under budget.
Revenue is projecting to come in at $12.4M, which is under budget with Net Revenue projecting to $6.6M. Collections are projecting to come in at $6.7M, which is under budget.
With the continued decrease in volumes, expenses are also projecting to come in under budget.
As the hospital heads into its busy season, they are hoping to sustain this lower level of expenses and be able to achieve greater gains from the increase in revenue. Salaries, benefits, consulting fees, contract labor, and physician fees should decrease in Fiscal Year 2018.