ROCK SPRINGS —Memorial Hospital of Sweetwater County reported a November gain of $407,767.
The hospital had another busy month, said Richardson, which is common during the winter months.
Chief Financial Officer Tami Love presented the ‘Narrative to the November 2017 Financial Statement,’ which says that November was one of the highest collection months ever.
Love said the hospital’s next goal is boosting revenue.
See some of the main November 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 November
- The bottom line from operations for November was a gain of $407,767, compared to a gain of $439,803 in the budget. This yields a 5.43% operating margin for the month compared to 5.81% in the budget.
- The YTD Net Operating Gain is $126,197 compared to a gain of $423,929 in the Budget. This represents a YTD Operating Margin of 0.35% compared with 1.14% in the Budget.
- The Total Net Gain for the month was $664,196, compared to a gain of $634,908 in the budget. The YTD Total Net Gain is $1,303,992, compared to a gain of $1,399,454. This represents a YTD Total Profit Margin of 3.63% compared with 3.77% in the budget.
- Annnual debt service coverage came in at 3.84. The existing bond covenants require that the hospital maintain debt service coverage of 1.25 for compliance.
- Average Inpatient Census for the month was 10; under budget by 8.9.
- YTD Average Census is 11.1 compared to 18.4 in the Budget and 18.4 in the prior year.
- Inpatient Surgeries were 4 under budget at 35 and Outpatient Surgeries were over budget by 7 at 156. There were 6,675 Outpatient Visits, under budget by 223.
- Total ER Visits were 1,384, which was under budget by 12.
- There were 45 newborns in November, over budget by 5. Births are under budget by 21 year to date.
- Revenue for the month was $13,036,894, under budget by $598,911.
- Inpatient revenue was under budget by $1,647,422. Outpatient revenue was over budget by $1,155,999 and the employed Provider Clinic was under budget by $107,489.
- YTD Total revenue was $66,140,152, under budget by $1,168,268. Inpatient revenue is under budget by $6,250,283. Outpatient revenue is over budget by $4,791,748 and the employed Provider Clinic was under budget by $107,489.
- Memorial Hospital is experiencing a shift from inpatient care to outpatient care. YTD inpatient revenue is 21% of total revenue compared to 30% in the prior year.
- Net patient revenue for the month was $7,150,870, under budget by $267,565. YTD net patient revenue was $34,977,530, under budget by $1,306,846.
- Deductions from revenue were booked at 45.1% for November compared to 46% in the budget and 45.5% for the prior year. YTD deductions from revenue are 47.1%, compared to 46.1% in the budget and 44.7% in FY 2017.
- Memorial Hospital’s expenses continue to stay around the $7 million mark.
- As of November, the daily cash expense is steady at $211,000, down from a high of $236,000 in the last fiscal year.
- Total Expenses for the month were $7103,978, under budget by $25,003.
- Salary & wage, physician fees, utilities, insurance expense, and depreciation were under budget for November.
Over Budget Expense Categories
- Fringe benefits – This expense is over budget by $27,105. Group Health was over budget by $43,752 and Unemployment was over by $20,000.
- Contract Labor – This expense is over budget by $123,879. OB, ICU, Surgery, Emergency Room, and Ultrasound are over budget for the month.
- Purchased Services – This expense is over budget by $114,062. Consulting fees, Advertising, Legal fees, and Pharmacy Management fees are all over for the month.
- Supplies – This expense is over budget by $131,912. Oxygen, Blood, Drugs, Maintenance supplies, and Other Non-Med/Surg supplies are over budget for November.
- Repairs & Maintenance – This expence is over budget by $5,118. Contract Maintenance and Maintenance & Repair service are both over budget for the month.
- Other Operating Expenses – This expense is over budget by $5,276. Freight and Physician and Employee recruitment are over budget for November.
- Leases and Rentals – This expense is over budget by $1,802.
- Operating Cash at month end was $13,179,667, up $172,912 from October.
- Collections for the month of November were $7,887,063, one of the highest collection months ever.
- The Days of Cash on Hand for September are at 107, the same as October. The existing bond covenants require that Memorial Hospital maintains 75 days of cash on hand for compliance.
- Gross Receivables at month end were $19,618,134, down $970,678 from the prior month.
- Net Patient Receivables at month end were $10,244,451, down $836,668 from the prior month.
- Days in Receivables are 43 for November, down 3 days in October.
Outlook for December
Inpatient volumes, including inpatient surgeries, are projecting to come in under budget.
The hospital continues to experience a shift from inpatient care to outpatient care with inpatient revenue and patient days, admits, and discharges being under budget.
Births are projecting to come in over budget. ER visits are projecting to be under budget.
Outpatient visits, including imaging and lab services, are coming in right at budget in December.
Gross patient revenue is projecting to come in at $12.5M, 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 continues in their busy season, they hope to sustain the lower level of expenses and be able to achieve regular monthly gains from the increase in revenue.
Salaries, benefits, consulting fees, contract labor and physician fees should decrease in fiscal year 2018.