Lower patient volumes lead to January loss for Veterans Memorial Hospital

by Brianne Eilers

The month of January ended on a disappointing note, financially, for Veterans Memorial Hospital (VMH) in Waukon. Both acute patient days and skilled patient days were down, as well as total surgeries, outpatient MRI, cardiac rehab and emergency room (ER) visit volumes. Inpatient and outpatient revenue also came in under budget, all helping to contribute to a loss of $77,095 for January.
Year-to-date, VMH is sitting at a bottom line of $27,383, which translates to a 0.3% profit margin. VMH Administrator Mike Myers noted that the flu season which generally hits during December and January did not seem to hit this time around. Myers also noted that deliveries continue to be strong, and he said the month of February has been "strong" as well. The number of days in accounts receivable (AR) are down to 72.7, and VMH has $2,884,000 in cash reserves.
The hospital has also been working on its operating budget. Myers noted that the goal has been sustainability, as he said, "there's not a lot of growth in the health care sector." Myers said looking at the last 10 years for VMH, there have been ups and downs, but on average, most areas have been about the same. He did point out that some areas, like OB and therapy, have seen some growth.
VMH is budgeting for a two-percent profit margin in the upcoming fiscal year. "We did that by not putting in as large of a price increase this year, as we normally have," Myers explained, adding that, "We are also kind of preparing for the future a little, where you have people more and more self-directing their care and they are going to be looking for the best value for their dollar. We want to make sure we keep our prices competitive."
Myers further added that VMH is not looking to eliminate any programs or at staff reductions. "The mantra is to sustain," he said.
In other matters, VMH received bids for a project to replace an air exchange unit over the Financial Services department. Myers estimated that work on this project would begin in October. VMH also received the donation of a lift system to the hospital from a former patient's family.
Myers also spoke a bit about how Iowa is being recognized nationally as a leader in the reduction of adverse patient events. He used the example of deciding how or even if to use urinary catheters on patients, because, as Myers explained, catheters can be a source of infection. "We are very strong in the field of adverse effects reductions and Veterans Memorial Hospital is part of a network of Iowa hospitals that work to reduce or eliminate those adverse effects," he said.
The new CT machine has been installed. Myers stated that the machine is faster and "a nice machine."
The hospital is also working on its Strategic Planning initiative, and has received input from over 70 employees, and is now working on putting together a plan using the priorities set by the participants. There was representation from board members, medical staff and all departments. "We have a good foundation to enhance our sustainability efforts," Myers noted. The plan will not be a 10-year plan or anything like that because things can change rapidly in the healthcare field.
Looking at Press Ganey results from October 1, 2013 through December 31, 2013, the results were favorable for VMH. Myers noted that December has not always been the best month for the hospital, but this last quarter was different.
"We always look at likelihood to recommend, and it continues to be above 85%," Myers noted. He also pointed out that ER and inpatient and outpatient provider scores were also very high. "It was a very good Press Ganey report. That is our niche. We want to make sure people walk out of here feeling cared for," Myers stated.
Myers also mentioned the turn-over report for VMH was slightly higher than usual, a fact he contributed to several retirements. "We will start getting into retirements more as time goes on," he noted. The turn-over rate was 13%, which Myers noted is still below the statewide average.