Despite increases in patient volume, Veterans Memorial Hospital just above "break even" for the month of May

by Brianne Eilers

Statistics for the month of May shared at the Tuesday, June 26 Board of Trustees meeting saw most areas of service at Veterans Memorial Hospital (VMH) in Waukon showing increases in usage over last year's same timeframe, with the exception of acute patient days, which were down 5.5%. Skilled patient days showed an increase of 24.1%.
VMH Administrator Mike Myers noted that May was “a very strong delivery month”, with deliveries being up 23%, year-to-date. Outpatient physical therapy was up 48.7%, and emergency room (ER) visits were up 11.5%. Outpatient revenue came in over-budget at $1,258,361 and gross patient revenue for May 2012 came in at $1,916,929, which was also over-budget. Year-to-date, gross patient revenue was up 9.2%.
Total expenses were also up 4.4%, and total operating revenue was up 5.1%. Though many areas showed an increase, VMH showed a bottom line of only $853 for the month of May. Year-to-date, VMH is showing a bottom line of $335,368, which is a 2.4% profit margin, a figure that is also up 37.6% over last year. Days in accounts receivable are down to 62.9, and cash reserves are up over $2.6 million.
Myers also explained that the auditors were at VMH this past week to work on the hospital’s 11-month cost report. “This will tell us where we stand with what we owe Medicare, ultimately,” Myers said. He further said that the auditors had commented that VMH had “a pretty good year.” Myers estimated that June will probably be similar financially, with a “break-even” month.
The Board also approved a capital budget of a little over $300,000 for the hospital. There will be some renovations for some of the patient rooms and the nurses station. The renovations will be done for aesthetics and to help reduce noise. There will also be some new equipment purchased for the operating room, as well as a make-over for the emergency room. Myers noted that last year, the capital budget was approved at about $250,000, and the fact that they were able to raise that amount this year is an indicator of the hospital’s success. “We appreciate the support and trust of our patients and their families,” Myers said.
In other matters, Myers also explained that VMH has been focusing on patient safety, in particular patient falls. VMH has gone more than 130 days without a patient fall, and they will continue to focus on patient safety issues. VMH has also been encouraging staff to get the Tdap vaccine to help prevent the spread of pertussis, also known as whooping cough, which can be dangerous for some individuals, especially infants. There have been outbreaks in surrounding areas.
The Veterans Memorial Healthcare Foundation held its golf outing in June. “It was a huge success and a very enjoyable time,” Myers noted. Financial information for the tournament wasn’t available as of the time of this meeting.
VMH has also started an Incontinence Program, which was put together by Occupational Therapist Melissa Clarke and OTA Bobbi Hansmeier. Participation in the program has been growing with referrals from local medical staff. Myers noted that the program had very little initial start-up costs, but has been putting out some pretty good returns.
Myers also talked a little bit about how the hospital will be changing its Physician Peer Review, in order to comply with new Medicare guidelines. Myers explained that a sample of physicians’ charts are reviewed for Medicare, and they will be contacting their network hospital, Mayo-Franciscan, to help with the review process.
Department heads were also present at the meeting to discuss VMH’s balanced score card, where they are heading with their strategic planning, and things going on at the hospital. Myers stated that one of the things he discussed with the board members and department heads was the outcome of the Supreme Court’s decision on the Patient Protection and Affordable Care Act, also referred to as “Obamacare”. As of the time of this interview, a decision had not yet been made. Myers stated that it was possible that Medicare could see cuts by the end of the year.
“The strength and advantage that we have here is that our leadership team has been in place for years. Our employees, they’ve been here for years, so we’ve been through change and tough times. But with the consistency that we have across the organization, we’ve weathered tough times,” Myers stated. He added that VMH tries to be financially conservative and, barring drastic reductions to the Critical Access program, he felt VMH will be able to adapt to changes for “years to come.”