By Russ Pankonin
The Imperial Republican
The official audit received in November by the board of the Chase County Community Hospital (CCCH) showed a profit for the 2008-09 fiscal year that ended June 30, 2009.
The past fiscal year showed a profit of $68,389 compared to a loss in 2007-08 fiscal year of $268,804.
Hospital Administrator Lola Jones said that bringing new doctors on staff stemmed the losses suffered in 2007-08.
During that time, she said the hospital relied heavily on locum tenens doctors to help with coverage. That coverage doesn’t come cheap, she noted.
The hospital also recorded a positive increase in its net assets.
With the addition of new equipment, the hospital’s net assets increased by $228,301 compared to a decline in assets of $168,147 in 2007-08.
Renee Fink, chief financial officer for the hospital, said CCCH purchased $275,000 in new equipment last year.
Jones said having a full complement of medical staff, along with expanded specialty clinics, played a key role in increasing overall revenues.
For the fiscal year, revenues increased $1.57 million or 19 percent to $9.92 million.
On the expense side, the hospital held increases to just 6 percent or $413,479. Total expenses totalled $8.34 million.
Fink said the hospital received $1.748 million less in reimbursement last year from Medicare and Medicaid, compared to what the hospital billed them. These contractual adjustments reduced overall income accordingly.
In addition, contractual adjustments to insurance companies totalled another $306,275, which also reduced income.
When combined, the difference in reimbursement from what was billed totalled $2.05 million, coupled with bad debt expenses of $132,408.
Outpatient care a big share of $
Of the $9.9 million patient revenues in 2008-09, 80.7 percent of the revenue was generated by outpatient services.
Fink said this is a growing national trend and CCCH is mirroring that trend.
The same was true last year, she said, with about 76 percent of the revenue coming from outpatient services.
The clinic in Imperial, along with the hospital’s lab services and CT scan services, represented 40 percent of the outpatient income last year, or $3.23 million of the $8 million in outpatient services.
In-patient revenues totalled $1.91 million for the last year.
Jones said the hospital has continued to invest in new equipment going into this fiscal year.
A new digital mammography machine accounts for the biggest share of expenditures this fiscal year.
The new machine, which cost about $290,000, provides for a better patient experience, Jones said.
Jones said many women were choosing to go to Denver for such digital exams, which can now be done here.
In addition, she said the new equipment results in far less call-backs than occurred with the hospital’s previous equipment.
The radiology department recently installed a new system to archive digital x-rays and scans for future recall. Cost of that machine ran $80,000.
The board has also approved the purchase of a new electronic records system which will be required for Medicare and Medicaid in the near future.
Stimulus funds and Medicare/Medicaid reimbursement funds will hopefully help offset the cost projected at more than half a million dollars.