A full agenda for both the Finance Committee meeting and the Board of Trustees meeting that followed limited reporting of Phelps County Regional Medical Center's financial statement to writing.
Usually, PCRMC Chief Financial Officer Ed Clayton goes over the financial reports at the committee meeting and answers questions. Wednesday night, committee chair Jo Ann Brand-Hoertel noted all members had received copies of the financial reports and asked for a motion to approve them for recommendation to the full board.
That recommendation was immediately given.
Clayton issues a memorandum about the financial statements at the end of the week before each meeting. In his memo for the August 2013 financial statements he noted the following:
• Net operating revenue for August was $19,708,000, which was under budget by $860,000. For the year, net operating revenue was $154,761,000, which was under budget by $5,954,000, but over last year by $8,444,000.
• Admissions were 565 in August, under budget by 20. For the year, admissions of 4,549 were under budget by 35 and under last year by 102.
• Patient days were 2,643 in August, under budget by 278. Year-to-date, patient days amounted to 21,512, under budget by 1,384 and under last year by 1,527.
• Adjusted patient days (adjusted for outpatient activity) were 7,020 in August, under budget by 920. Year-to-date, adjusted patient days of 57,421 were under budget by 4,819 and under last year by 3,341.
n Total expenses for the month were $19,518,000, under budget by $916,000. For the year, total expenses were $153,577,000, under budget by $5,236,000 and over last year by $9,671,000.
• Income from operations in August was $189,000, over budget by $54,000. For the year, income from operations was $1,185,000, under budget by $717,000 and under last year by $1,226,000.
"Through August, income from operations as a percentage of net operating revenues was 0.8 percent, compared to a budget of 1.2 percent and prior year of 1.6 percent," Clayton noted in the memo.
• Non-operating revenue was down $399,000 in August, under budget by $680,000. Clayton said it was due to poor market conditions.
• Net income for August was a loss of $210,000, under budget by $626,000. For the year, net income of $4,099,000 was under budget by $6,000 and under last year by $1,703,000.
"Through August, net income as a percentage of total revenues was 2.6 percent, compared to a budget of 2.5 percent and prior year of 3.9 percent," Clayton wrote.
•Net patient receivables added up to $23,786,000 at the end of August, an $828,000 decrease from July 31. Days of revenue in hospital accounts receivable were 45 at Aug. 31.
• Total cash and investments was $894,999,000, a $1,714,000 decrease from the end of July.
• Total debt was down by $255,000 from July 31 to $24,195,000 at the end of August.
• Cash and investments less debt, what Clayton calls "the cushion," was $65,304,000 at the end of August, a decrease of $1,459,000 from July 31.
In other business at the Finance Committee meeting:
Page 2 of 2 - • Layla Earl, managed care contract coordinator for the hospital, presented information about health care exchanges that will begin operating after Oct. 1 under the authority of the Affordable Care Act, also called Obamacare.
The hospital has received a one-year grant from the Missouri Foundation for Health to train, certify and hire individuals to counsel under-insured and uninsured residents of the five-county market region about signing up for commercial insurance through the federally run health care insurance exchange that will begin operation Oct. 1. Americans will be required to sign up for insurance. Those who do not have access to it through their jobs will sign up for it in the health care exchange.
Ted Day, vice chairman of the hospital board, said he had heard a news report about the Texas health care exchanges and learned that a family of four in Texas purchasing insurance through the exchange would have to pay $283 per month.
"If they can't afford insurance, where are they going to get that money?" Day asked.
Earl said earned tax credits will be available to residents, based on their income, to help them pay the monthly premiums. If that family is like many rural Missouri dual-income families, it would make $35,000 per year income, qualifying the family for a $1,200 credit that would lower that premium to under $190 per month.
Enrollment for the first year of Obamacare will be open Oct. 1, 2013, through March 30, 2014.
For the second year, open enrollment will run Oct. 1, -Dec. 7, 2014.
• The committee approved the Aug. 28 minutes.
• Revisions to the hospital's investment policy were approved for recommendation to the full Board of Trustees.
•The financial statement audit policy was reviewed and approved for recommendation to the full board.