Revenues down at hospital
On the heels of a favorable 2010 audit presented last month, the financial picture is looking bleak for United Hospital District so far this year.
Administrator Jeff Lang says while volumes have been good, revenue has been soft.
“Much of it is that we now are getting paid less for the same amount of work we’re doing,” says Lang.
Cuts in federal and state program aid as well as insurance reimbursements has meant less revenue.
Through May total income was $10.55 million, or $521,852 less than budgeted. A year ago, revenue for the first five months was $10.742 million.
Net income figures aren’t any better.
At nearly $41,000 through May, net income is behind the budgeted amount of $543,629 and last year’s year-to-date total of $1.145 million.
Lang says the drop in clinic and inpatient revenue can be attributed in part to less surgical activity. Also, he says expenses are higher due to recruitment costs and locum coverage for both anesthesia and C-Section call coverage.
Larry Lee, chief financial officer for UHD, says a tough economy and less earnings on investments have added to the financial woes.
Lang and Lee laid out a plan in hopes of improving financial performance.
“We are being more diligent to make sure actual staffing levels match budgeted levels according to actual volumes,” Lang says.
“It’s a realistic plan that will improve our financial performance by just over $1 million by year end,” he adds.
Both Lee and Lang stress there will not be any massive layoffs.
“We’ll just be doing some tweaking in the number of staff hours in various departments to match more closely the revenue coming in,” says Lee.
However, less than expected admissions at the Adolescent Treatment Center in Winnebago has resulted in staff reductions of 3.5 full-time equivalency positions.
In addition to cutting expenses — such as training, travel and advertising — officials are looking for ways to generate more income.