Hospital finances remaining strong as FY 2017 busting budget expectations early - : Local

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Hospital finances remaining strong as FY 2017 busting budget expectations early

Print
Font Size:
Default font size
Larger font size

Posted: Friday, September 2, 2016 11:00 am

Polk Medical Center’s first month of earnings were reported for the 2017 fiscal year at the latest Cedartown-Polk County Hospital Authority meeting, and thus far the books are showing profits for the year.

Clarice Cable, director of accounting for Floyd Medical Center, said that revenue came in greater than expected and expenses were slightly lower, giving Polk Medical Center a profit margin for the first month of earnings at $600,532.

Total revenue was up 4.87 percent, or $105,431 higher than was budgeted for the year thus far, which was also helped along with a 15.93 percent decrease in the total operating expenses for the first month of the 2017 fiscal year.

Which means that after all is said and done, Polk Medical Center came in 235 percent above their expectations on the budget, or some $421,314 above the $179,218 in profit that was budgeted.

“It shows that the employees of Polk Medical Center are definitely doing a good job in maintaining costs and in turn also increasing revenue,” Cable said.

She did point out that it is only the first month of the fiscal year, and that revenue and expenses are likely to fluctuate based on what the hospital experiences in terms of patients coming and going through the next 11 months.

“Our operating margin is currently at 26.5 percent, and we actually budgeted the margin what we considered high at 8.3 percent,” she said.

She also pointed out that their Medicaid payments as percentage of revenue was also well under what was expected, and when payments pick up for care from the state, so in the future the hospital is expected to see a further increase in revenue from what’s owed on medical bills.

Among other financials that Cable reported that will remain important to the board are indicators on how well Floyd Healthcare Management, parent company to Floyd and Polk Medical Centers and more, are performing overall.

Cable said main areas of concern for keeping A ratings from Moody’s and Fitch’s agencies on bonds sold on the market are for operating margin, maximum annual debt service, days with cash on hand, the cash to debt ratio, debt to capitalization ratio and the average age of “plant,” or in this case the various locations Floyd Healthcare Management operates.

In terms of the hospital’s desired results to keep within the guidelines ratings companies want to see, the hospitals are thus far mainly keeping a good grade. Their operating margin overall at 3.58 percent is within a range both agencies want to see, along with the 3.67 percent maximum annual debt service, the 176 days of cash on hand and 92.9 percent cash to debt ratio.

Where Floyd Healthcare Management still needs some work is on their debt to capitalization ratio, currently at 48.96 percent, and the average age of buildings used at 9.2 years.

The age of Floyd Healthcare Management facilities was greatly improved with the new Polk Medical Center, but Floyd Medical Center Urgent Care locations that are set to come online in the next years, along with some services moving out of the hospital and into outpatient care offices, will also make a big dent on the age of buildings overall.

“That number will fall as we finish projects we currently have underway over the next 18 months,” Cable said. “All the trends we’re tracking here for comparison to our credit ratings are in the correct arrangement for where we want to go from the rating we’re at now to the A rating.”

U.S. Marshals arrest three after lengthy investigation

According to Cherokee County Sheriff Jeff Shaver, Sheriffâ's Office investigators, Alcohol, Tobacco and Firearms Agents, and Deputy U.S. Marshals, executed warrants on three individuals from the Ellisville community on Thursday, Jan. 19, 2017.

More From Latest Region Stories

Follow us on Facebook