Friday, August 23, 2013
It Was a Very Good Year
At today's Board Finance Committee, Kim Repac, our CFO, provided a report on the FY 2013 Year End Review. Wow! Our admissions were down 774, which under our new payment methodology is a good thing. Our Case Mix Adjusted Length of Stay was also down to 4.09 days. The way we use Observation Beds has improved and we saw an 8% decrease over last year. Our regulated outpatient visits were down by 10.5%, which is also a good thing; and our ED visits were up, but ED admissions were down by 4.5%. Our readmission rate continues to come down each year. We saw dramatic improvement in our potentially preventable conditions producing a reward of $1.78 million out of a potential of $2 million putting WMHS in the top 10% for all Maryland hospitals. We also saw improvements in the financial performance related to physician practices by $900,000. Overall, we had a net income from operations of $10,861,000 or a 3.6% operating margin and a total revenue over expense of $15,151,919 or a 5% total margin. What a difference a year makes. Now in fairness, we cut supply and labor expenses by almost $7 million during the fiscal year, along with convincing the Cost Review Commission to revise their formula related to averted bad debt, which cost us millions during Fiscal Years 11 and 12. They also agreed to provide us with a one-time settlement of over $2 million based on a flawed formula on Medicaid expansion. In summary, we turned around our financial condition from a FY'12 loss of almost $2 million in total revenue to over $15 million; we dramatically improved our Quality Based Reimbursement; our patient satisfaction results improved and we reduced admissions and readmissions along with our ancillary use rates for the third consecutive year. It was a very good year and hopefully one that we can continue to repeat year after year.