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VAN DYKE -- At last Tuesday's, January
29, meeting, the hospital's Board of Directors received their first
annual audit report with a profit, a major achievement for the
county's recently-consolidated hospital district.
Waco CPA Michael Oatman, of Parrish,
Moody & Fikes CPAs, presented the audit report for the hospital's
fiscal year ending June 30, 2007.
The report showed a bottom line profit of
$33,267. Although the profit was small, just 0.2% of total revenues of
$16.3 million, it was a vast improvement over the $309 thousand loss
reported in 2006.
According to Comanche County Medical
Center's Chief Executive Officer Kevin Storey, auditor Oatman stated
that it was nice for a change to be able to present a favorable audit
report.
Oatman was complimentary of the progress
the hospital has made toward profitability, while at the same time
noting that the revenue per full time equivalent hospital employee was
still on the low side.
Oatman said that it could either be that
the hospital still has too many employees, or that its charges for
services are lower than average, or some combination of the two
factors.
CEO Storey commented in an interview
after the board meeting that only two employee positions had been
added in the months since he had been working there.
Storey added that when he first arrived
at CCMC he had found the hospital's prices to be lower than those of
comparable hospitals. He said that pricing increases had been
implemented early in the current fiscal year when prices were raised
to the Medicare allowable levels.
Storey provided a copy of Oatman's
on-screen audit presentation to the Board. It showed the hospital's
cash liquidity, accounts receivables collections, accounts payables
payments and operating expenses all with improving trends over prior
years.
The interim financial reports in the
Board book showed a loss of $107,661.72 in November and a profit of
5,823.59 in December. The six month December year-to-date loss is
$494,829.74, vs. a ytd loss of $240,400.71 in the prior year.
The hospital's net patient service
revenues for the six month period in 2007 were $12.685 million, down
from $13.844 million in 2006. Operating expenses for the same periods
decreased from $8.556 million in 2006 to $8.115 million in 2007.
Storey commented regarding the current
year that the drop in patient service revenues accounts for the bulk
of the increased loss. He cited the loss of the clinic's internist,
Dr. Michael Chiang, as the most important factor in the revenue
decline and expressed optimism that the addition of Dr. Joe Hubbard
beginning in March would improve revenues.
Storey also pointed out the decreases in
operating expenses, the main area that management can control.
Storey noted that during the Board's
consideration of new equipment and leases that it tabled the approval
of a new sterilizer for future consideration, approved the acquisition
of 22 new IV pumps at a $600 monthly savings over the lease cost of
the 20 older IV pumps. The Board also approved the $12,000 purchase of
six ice machines with five year warranties that were costing over $700
per month to rent.
Storey said that he had reported that in
addition to Dr. Hubbard signing a contract with the hospital, that Dr.
Ruth Reeves had signed a letter of intent to work at the hospital upon
the completion of her internship.
Several new nurses had also been hired as
the result of recent recruiting efforts.
Storey also reported a $35,000 ambulance
purchase grant has been received and that the hospital is awaiting
word on a second $34,000 ambulance purchase grant. The approximately
$75,000 payment from the 2006 cost settlement report had also been
received during January.
Storey added that he is expecting January
to show a profit because revenues were above the projected breakeven
point and audit-related expense adjustments would decrease certain
year-to-date costs.
The 2008 Board of Directors election was
discussed in the Board meeting. Storey said that Kathy Johnston had
checked into whether early voting could be conducted in DeLeon and it
appeared that it would be possible to do so.
Based on a drawing held when the current
Board was first seated in May 2007, the two members whose terms are
expiring this year are Charles Mazurek and Gale Easley. Storey said
both indicated they had not made up their minds, but were leaning
against running for re-election.
Both Mazurek and Easley have received
encouragement to run again, however, because of their long and
distinguished service on the Boards of both the Consolidated Hospital
District Board and earlier on that of the Comanche Community Hospital.
They also represent a large portion of the collective accumulation of
Board experience currently serving.
Storey indicated that the hospital's cash
position has tightened a bit in the last month or two as the result of
sub-par revenues and earnings in the fall. Payables have crept up and
the cash accounts have diminished, however, the $1 million cash
reserve remains untouched and billings have bounced back strongly in
January. In the meantime, spending on capital projects has been put on
hold.
The Board held a closed, executive
session regarding personnel matters. Storey indicated that there was
no action taken following the resumption of public session and
subsequent adjournment.
In response to the reporter's question,
Storey responded that Chief Nursing Officer Shannon Steigleder no
longer is employed by Comanche County Medical Center. He would not
elaborate further. |
