Pomerene Hospital has solid first quarter
Pomerene Hospital showed positive financial growth in the first quarter of 2011, but challenges remain in higher taxes and declining reimbursement from programs such as Medicare.
CEO Tony Snyder informed the Pomerene Hospital board of trustees Thursday, April 28, that net income in the first three months of the year came in at $450,000, exceeding expectations. The forecast for the quarter was projected at $200,000, an expected decline from 2010’s first quarter net income of $320,000.
Snyder attributed the numbers to solid management of expenses by department heads. However, he said, future financial health could be greatly affected by forces outside the hospital’s control.
“I really hope we’ll be showing (similar numbers) in November-December,” Snyder said. But a hospital franchise fee and Medicare cuts aimed at balancing the state budget will have an effect locally, he added.
Snyder noted that patient discharge costs -the cost to the hospital to provide care to patients- remains relatively low at $4,800 per discharge. The hospital also saw more patients than expected.
A quirk from the first quarter indicated length of stay increasing opposite to the seriousness of the patient’s condition.
“You may have to keep your sicker patients longer, but (the level of ill health) is down,” Snyder said. “The two aren’t correlating together and we’re looking into why that is.”
The hospital expects to pay a hospital franchise fee of approximately $977,000, one-third higher than the amount paid to the state’s last biennial budget. Cuts expected in Medicare expenses will mean providing the same services at lower reimbursement, Snyder said.
In other business, trustees approved the purchase of three GE Aspire View anesthesia machines and three monitors at $163,800. The purchase, requested by Lisa Jackson, director of surgical services, will be paid for with $100,000 earmarked in 2010, with the remaining funds coming from the 2011 budget.
The new equipment replaces three machines that are 11 years old. The typical life of anesthesia machines is seven to 10 years, Jackson said.
The new machines will be placed in the hospital’s three operating rooms: Two in surgery and one in the OB ward.
The decision to go with GE came after staff tested machines from three vendors. The price includes a $24,000 trade-in on the old machines.
The next meeting of the Pomerene Hospital board of trustees will be held May 26.
CEO Tony Snyder informed the Pomerene Hospital board of trustees Thursday, April 28, that net income in the first three months of the year came in at $450,000, exceeding expectations. The forecast for the quarter was projected at $200,000, an expected decline from 2010’s first quarter net income of $320,000.
Snyder attributed the numbers to solid management of expenses by department heads. However, he said, future financial health could be greatly affected by forces outside the hospital’s control.
“I really hope we’ll be showing (similar numbers) in November-December,” Snyder said. But a hospital franchise fee and Medicare cuts aimed at balancing the state budget will have an effect locally, he added.
Snyder noted that patient discharge costs -the cost to the hospital to provide care to patients- remains relatively low at $4,800 per discharge. The hospital also saw more patients than expected.
A quirk from the first quarter indicated length of stay increasing opposite to the seriousness of the patient’s condition.
“You may have to keep your sicker patients longer, but (the level of ill health) is down,” Snyder said. “The two aren’t correlating together and we’re looking into why that is.”
The hospital expects to pay a hospital franchise fee of approximately $977,000, one-third higher than the amount paid to the state’s last biennial budget. Cuts expected in Medicare expenses will mean providing the same services at lower reimbursement, Snyder said.
In other business, trustees approved the purchase of three GE Aspire View anesthesia machines and three monitors at $163,800. The purchase, requested by Lisa Jackson, director of surgical services, will be paid for with $100,000 earmarked in 2010, with the remaining funds coming from the 2011 budget.
The new equipment replaces three machines that are 11 years old. The typical life of anesthesia machines is seven to 10 years, Jackson said.
The new machines will be placed in the hospital’s three operating rooms: Two in surgery and one in the OB ward.
The decision to go with GE came after staff tested machines from three vendors. The price includes a $24,000 trade-in on the old machines.
The next meeting of the Pomerene Hospital board of trustees will be held May 26.
Published: May 1, 2011
