Veterans Memorial Hospital begins new fiscal year with $50,000 profit for July

by Brianne Eilers

As a part of the monthly meeting of the Veterans Memorial Hospital (VMH) Board of Trustees, the Board heard the yearly financial audit report from Dave Schueller. According to the findings of the auditors, Eide Bailly LLP, VMH revenues totaled $12,689,499, while expenses totaled $12,674,420.
The overall bottom line for the hospital for the fiscal year ending June 30, 2009 was a profit of  $15,079. Net patient service revenue increased nine percent, or $994,253, from the prior fiscal year. The number of days for charges outstanding was 84 days, down from 96 days in the prior year. VMH was higher than the industry average for Iowa’s Critical Access Hospitals, which is 59 days.
Charity Care, based on charges foregone, was $125,239, compared to $115,863 last year. “This is what the auditor has been seeing for a hospital our size, this is about what they are seeing. There are some that are losing money, but we’ve been fortunate to keep our heads above water, so to speak,” VMH Administrator Mike Myers noted.
A copy of the audit is available at the VMH Administrator’s office or online at Office of the Auditor of the State of Iowa at http://auditor.iowa.gov.
For the month of July, the first month of the new fiscal year, VMH made a net income of $50,079, which ends up being a 4.4% profit margin. Total operating revenue was down 2.3%, and total expenses were down 3.7%. Myers explained that part of the reason total expenses were down was that VMH did not give the raises that they had budgeted for. Cash reserves are at $1,368,000, compared to $756,000 at this time last year. Myers commented that the month of August has been slower.
The radiology department is moving along to convert the radiology contract from Winneshiek to Gundersen, and it is estimated that the conversion should be completed by the end of September. VMH will be offering digital radiology, which includes digital mammography. One of the advantages of digital radiology is a quicker turn-around time. “This is done all with the assistance of Gundersen-Lutheran, and they have been very helpful,” said Myers. “We’re going to be state of the art.”
The hospital is continuing to monitor patient satisfaction, and the VMH emergency room has received some of the top scores in the nation. Inpatient scores have also been very good. Myers explained that with the scoring is a priority index, which looks at what patients think is important, and the inpatient side hasn’t had anything that has been on there for more than two quarters.
Myers did note that on the emergency room surveys the “informed about delays” category has been on the priority index for about six quarters, and that they are looking at ways improve on that. “But despite that, we continue to have pretty good scores,” Myers noted.
In the ongoing issue of Healthcare Reform, Myers stated that Senator Chuck Grassley has requested a meeting with Iowa hospital representatives. Senator Grassley is a member of the Senate Finance Committee, which will be issuing a report on healthcare reform and how it will be paid for. Myers also said that the opposition seen at the town hall meetings and the death of Senator Kennedy might have an impact on the outcome.
In other matters, VMH is getting ready for the flu immunization season. Myers noted that the push is to be aggressive to get everyone vaccinated for the regular flu and the H1N1 virus, and that information on immunization clinics should be coming out soon. He added that they are anticipating a busy flu season.
VMH is on the upper limits for Charity Care and Bad Debt, which Myers said is not surprising, given the current situations with employment and insurance. The Board tabled the Identity Compliance Program, which consists of requiring two forms of identification for patients.
In other business, the Healthcare Foundation is planning its annual Christmas Tree Fantasy for November. The terms of two Board of Trustees members, Patty Fosaaen and Rev Lonning, will be expiring and those seats up for election later this year.