Losses reported at UHD
The past two months have been financially tough for United Hospital District in Blue Earth.
However, the chief financial officer says there’s nothing to be concerned about.
“I think UHD is performing strongly right now. We have a very strong physician base and organization here,” says Larry Lee.
While net income for September was in the red, it was a significant improvement over August.
Last month, UHD posted a loss of $47,262; compared with $229,691 the month before.
A financial summary for September shows net income for the year is running behind 2009.
Last year, the year-to-date net income for the first nine months totaled $1.093 million.
So far, the net income of $916,841 is 16 percent below 2009.
At the end of August net income was nearly $130,000 more than budgeted. Currently, it is $20,313 less than anticipated.
“We’re experiencing a change in our organization, a shift in the type of patients we have as payers,” says Lee.
For example, 66 percent of inpatient revenue was from medicare. That has decreased to 58 percent.
Lee currently is in the process of reviewing departmental expenses, volume and
revenue estimates to develop the 2011 budget.
The board’s finance committee should receive a preliminary budget by its November meeting and a final budget is expected to be presented to the full board in December.
On a another matter, UHD administrator Jeff Lang says the search for a general surgeon continues.
Lang says several phone interviews have been conducted over the past few months and one candidate has made an onsite visit.
The hospital district is starting to feel the financial impact of not having a surgeon.
Lang says the district needs to hire a locum for 50 percent of the C-Section call coverage and that will add an extra expense of $50,000 for the remainder of the year.