Closing the books on 2014
Hospital contributes $8 million in payroll to economy
The news wasn’t good, but it was better than expected.
Republic County Hospital ended the year with a $950,000 loss—but had budgeted for a $1.4 million loss, hospital trustees learned at their annual meeting October 27.
Of that $950,000, $710,000 is depreciation, which is a noncash expense, but an expense considered reimbursable by Medicare. That brings the actual shortfall to $250,000.
JH Seitz, regional vice president for the Great Plains Health Alliance, which manages the hospital, said the yearend financials are positive in light of the fact that patient days dropped 200 days from the previous year, or a 10 percent decrease.
“You take 200 days times $1,500 per patient, and that’s $350,000 less income,” he said. During 2014, the hospital had $1.7 million in deductions from revenue (contractural adjustments) by Medicare, $440,000 in deductions of revenue from Medicaid; and $403,000 for allowance for bad debt, and increase of $129,000 from 2012.
•For the year, 70 percent of patient services were provided to Medicare patients; 14 percent to patients covered by Blue Cross/Blue Shield; and two percent had no insurance.
•The obstetrics department delivered 57 babies compared to 48 in 2013. Long Term Care is full, with an average of about 34 residents per day.
•Of 11.4 million in 2014 expenses, $10 million was spent locally. Of that amount, $8.3 million went to salaries, which is a one percent decrease from the previous year.
•Republic County Hospital employs 188 employees (hours equivalent to 160 fulltime jobs). Of that number, 146 live in Republic County, 42 live outside of Republic County. “We consider (the $10 million) funds “returned” to the area, since most of the funds had already left the community in the form of taxes and health insurance premiums, and could only return to the community in the form of payments to the hospital,” said Blaine Miller, administrator.
•More than 30 families qualified for $103,000 in charity care in 2014, a decrease of nearly $10,000 from the previous year.
•Cost of providing round the-clock emergency room coverage was $292,000. The hospital receives some payments and reimbursement for ER services, and expects the service will cost about $140,000 more than what it collects, Miller said. *The project budget for 2015 anticipates $13 million in revenues,and $14 million in expenses.