Phelps Health reported a loss from operations for November; however, year-to-date, the health system's net income is over budget for the fiscal year. Also, they are experiencing significant growth at the health system's Waynesville Medical Plaza.

Phelps Health’s net operating revenue was under budget by 0.7 percent reaching $21.9 million in November of this fiscal year, Chief Financial Officer for Phelps Health Jana Cook said at Phelps Health's Wednesday, Dec. 18 Board of Trustees meeting.

Cook identified both the health system’s adjusted average daily census of 84 patient days coming in 1.6 percent under budget in November and an adjusted average daily census of 246, under budget by 6.8 percent as attributing to the $152,000 variance in net patient service revenue for the month.  

Operating expenses were over budget by 3.6 percent in November reaching $22.4 million. Cook said the cost of supplies and the use of agency personnel contributed to the $786,000 variance in operating expenses for the month.

Supplies expense ran over budget by $570,000 mainly due to the cost of chemotherapy drugs and surgical services in November, while purchased services came in over budget by $598,000 related to the use of agency personnel – partially offset by a $252,000 decrease in wages and benefits.

The health system reported a loss of $467,000 from operations for the month. “Primarily, that was related to volume. It’s a shorter month, and that affects operations,” Cook said.

Income from operations was $938,000 below budget in November, while income from operations through November of fiscal 2019 totaled $3.7 million and was under budget by $3.6 million.

Phelps Health’s income from operations as a percentage of net operating revenues was 1.5 percent through November compared to the health system’s budget of 3 percent.

Phelps Health’s net income was under budget by $749,000 in November totaling $331,000; however, the health system’s net income came in over budget by $4.9 million, reaching $19.5 million through the first 11 months of this fiscal year.

Net income as a percentage of total revenues was 7.4 percent compared to the health system’s budget of 5.8 percent through November.

Phelps Health’s non-operating income in November was over budget by $189,000 reaching $798,000 due to favorable market conditions, Cook said.

Total cash and investments have grown by $16.4 million from Dec. 31, 2018, and Cook said as of Nov. 30, Phelps Health’s cash and investments totaled $157.3 million.

Phelps Health’s total debt increased by $3.5 million from Dec. 31, 2018, and as of Nov. 30 the health system’s debt totaled $64.5 million, Cook said.

Phelps Health’s total days cash on hand has grown year-to-date and is currently at 228.7 days; above the benchmark at 159 days, Cook said.