A HADH financial and activity update

At the last Hermann Area District Hospital (HADH) Board meeting, the Board’s “2019 Governance Practices and Performance Assessment Results” were discussed, as well as the hospital’s financials, through June 2019 and hospital activities through July.

The hospital continues to move in a positive direction towards financial stability, though some activity numbers that effect profitability will continue to be a challenge for HADH, going into the future, according to the Board.

HADH finances

Some positives and challenges from the financial statements:

* Admissions Revenue June Year-to-Date (YTD): 1) Inpatient and Professional Fees Revenue YTD is up $1,994,000 compared to 2018 2) Swing bed revenue YTD is up $1,130,000 compared to 2018. (Swing Bed is a Medicare program that allows patients to receive skilled care services at HADH once acute hospital care is no longer required, but the patient continues to need services that cannot be easily provided in the patient's home.)

* Year-to-date total gross patient revenue is up $2,350,000 compared to 2018.

* June YTD outpatient revenue is down $775,000 compared to 2018

* Year-to-date deductions from revenue total $9,037,000 or 51 percent of gross revenue.

* Year-to-date expenses are down by $755,000 compared to 2018

* The net profit for June is $138,671 with a YTD net profit of $832,566

One challenge from the balance sheet of June 2019 is patient accounts receivable. That number as of this month stands at $8,770,537—a difference of $2,591,578—from last year’s $6,178,959 number. Total liabilities have also increased $695,954, from last year’s $12,727,250 at this time to $13,423,204.

The big positive is net income, as of June 2019, is $832,566 compared with last year’s loss of $902,572, for a variance of $1,735,138.

Summary of HADH activities (YTD July 2019) Comparisons are from YTD July 2018. See “Bottom line improvements” below for more information.

* Total emergency room visits are down 11 percent, from 1906 in 2018 to 1697 in 2019.

* Total number of admissions to HADH was 345, up from 2018’s 270—an increase of 28 percent

* The total number of surgeries is up 37 percent, from 178 to 244

* Outpatient clinic visits are down 22 percent, from 1665 to 1301

* Rehabilitation services are up 17 percent, from 21,860 to 25,561

* Rural health clinic visits are up in the low double digits on average

A recent plan of action (prepared by HADH Admin. Dan McKinney)

1. We need to work with clinic providers to bring more outpatient services to the hospital based off clinic referrals. Clinic staff has been holding Saturday hours and working to increase visits which are averaging 10 per Saturday in Aug. As part of the clinic provider's efforts to increase visits, a registered nurse is doing routine prescription refills to free up the provider’s time for more patient visits. Erin Adams, CPNP-PC has been seeing pediatric patients in Hermann and Montgomery City. She has seen up to 14 patients, three more from the prior month report. 2. Through July, emergency room (ER) visits continue to decrease and are down 11 percent from the prior year; but admissions out of the ER still remain up at 41 percent which is increasing the hospital’s acute and observation census. 3. Part of conversion to Cerner (contracted billing solutions company) included the intention of improving the capture of revenue. Some of our revenue growth is probably due to this, but difficult to measure. 4. The hospital will continue to work on ways to enhance swing bed revenue. Swing Bed patient days are up by 3 percent over last year. The hospital lost a marketing person who made it a point to visit other hospital discharge planners, and bundling is probably having an effect on admissions. 5. Stephanie Swayze has volunteered to assist the hospital with public relations and is working on ways to attract more positive attention.

This past July, the HADH Board of Directors completed an assessment coordinated by outside firm governWell. This was to gauge the Board’s governing practices and overall performance, so they could identify issues and priorities for the future. Some of these results will be discussed in the next edition of the Hermann Advertiser-Courier.

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