“The month of October was probably our best month of operations so far in 2018. Overall volume was up throughout the organization. This coupled with expenses being down led to a very good month,” said Phelps County Regional Medical Center's Vice President and Chief Financial Officer, Jana Cook.
The inpatient census for Phelps County Regional Medical Center (PCRMC) was back up, from the two previous low months, with 84 inpatients present at the official census-taking, which was right on target with the budget, said Cook.
The acute inpatient census was over budget by around three patients per day but was counterbalanced by psychiatric and acute rehab patients below budget by about three patients per day.
Overall in October, the adjusted average daily census for patient volumes in the medical center was 253 patients treated daily compared to a budget of 244 patients. This was 3.5 percent over volume at the organization's medical center, said, Cook, when presenting the financial update for PCRMC at the Nov. 28 Board of Trustees Meeting.
Year-to-date, a total growth over 2017 was seen in the organization for both inpatient days and overall adjusted patient days. Adjusted outpatient visits saw a total overall increase as well, said Cook.
“The total growth over 2017 was 4 percent, and in our inpatient days there was a 5.5 percent overall growth,” said Cook.
The main area that saw growth in PCRMC was surgeries, which increased by 7.5 percent over 2017, and just over 500 operations were performed during October -- one of the busiest months for surgeries within the medical center, said Cook.
The organization’s total net operating revenue for October was $22.5 million and was over budget by $657,000.
“I mentioned volume was up in the hospital, we also saw good net patient revenue over budget in the clinics of around $400,000,”said Cook. "A total of 3 percent over budget in operating revenues."
However, total operating expenses for October of $21.3 million were below budget by $162,000. The main areas that saw variances from PCRMC’s operating budget were in salaries and wages along with employee benefits.
“That has been the trend all year where we see the employee benefits below budget due to changes we made in the health plan, and we also saw salary expense down,” said Cook.
Salary and benefit expense was under budget by $459,000 for October, primarily related to a decrease in expected health insurance expense and agency usage.
Purchased service expense was over budget by $214,000 related to the use of agency personnel, and supply expense was over budget by $223,000 related to additional volume experienced in October, said Cook.
Total income from operations for the organization for October was $1.2 million, which was over budget by $820,000. “Our budget was $400,000, so that is an overall operating margin of 5.5 percent,” said Cook. “We did have some volatility in the market, so we did post a loss in non-operating revenue, so overall net income was at a loss of $2.9 million.”
Non-operating revenue was over budget by $4.5 million in October, said Cook.
As for year-to-date, PCRMC’s total operating revenues were $214.2 million -- over budget by $900,000.
PCRMC had $206.6 million in total year-to-date expenses, which was under budget by $2.4 million. Cook noted the key areas of the organization’s expenses were $1.8 million in salary and wages, and $2.9 million in employee benefits.
The organization had $7.7 million in year-to-date income from operations. “That is over budget by $4.4 million, so a variance from budget of an additional $3.3 million,” said Cook.
Income from operations as a percentage of PCRMC’s net operating revenues was 3.6 percent year-to-date, while the operating margin for the organization was budgeted at 2.1 percent.
Non-operating revenues for the organization increased by $200,000, and total net income came in at $7.9 million—a total margin of 3.7 percent, said Cook.
Total cash and investments were $146,000 on Oct. 31, 2018, which was an increase of 14.4 million from Dec. 31, 2017, according to Cook, who added the organization had paid down $3.8 million in bonds payable.
Total Debt for the organization was $61.8 million as of Oct. 31, 2018, which was a decrease of $3.8 million from Dec. 31. 2017, said Cook.