November fiscally disappointing for VMH

by Brianne Eilers

The month of November turned out to be a disappointing month financially for Veterans Memorial Hospital (VMH), with the hospital showing a loss of $42,155 for the month, as well as a loss of $26,451 year-to-date, compared to where the hospital was at this time last year, with a profit of $113,920.
VMH Administrator Mike Myers explained that some contributing factors to the loss for the month included low inpatient volumes. “Skilled patient days were down significantly from previous years, and acute was almost flat. On top of that outpatient was essentially flat, too.” Myers noted. For the first time this fiscal year, expenses at VMH were also over budget.
However, one bright spot in the financial status of VMH is that the hospital has just over $2 million in cash reserves, compared to $1.4 million at this time last year. “That is our cushion to operate on in the event that things are slow for a long time,” Myers said. He also pointed out that days of revenue in accounts receivable is at 67.7, compared to 82.8 at this time last year. December is not, historically, a strong month at VMH either.
In other matters, crews have been working outdoors digging trenches and burying the fibers around the hospital campus. “That will phenomenally increase the speed of our transmission of x-rays and data files,” Myers explained. The system will be up and running early in 2011.
Myers also touched on the areas that VMH will be focusing on in 2011. The hospital will continue to help the clinics recruit, as well as helping to provide ER coverage relief. As VMH is a heavily fixed expense facility, the hospital will be looking more closely at some of those fixed expenses. Myers was quick to point out that this does not mean lay-offs, but that the hospital will be looking into all fixed expense areas, such as purchasing, and if the hospital may be making some purchases that are unnecessary and could possibly be eliminated. VMH will also be pursuing grant money for implementing electronic health records. The hospital has already started that process. Electronic health records will allow for health information to be accessible nationwide, so that if a person is vacationing away from home and would need medical attention, the facility they are being treated at would have access to the patient's health information. A similar term is electronic medical records, which are a facility-specific form of the health information.
Also in 2011, VMH will be looking at its Strategic Plan and making sure that it is “where it needs to be” in the light of national healthcare reform. VMH will also strive to maintain adequate cash reserves in the upcoming year, as well as look at how VMH deals with the issue of health insurance. All of these items of focus tie in closely with national healthcare items that VMH will be watching, such as what aspects of health care reform will be kept and which will be eliminated and legal challenges to the bill; recruitment of health care workers to rural America; health care insurance costs; primary care providers; employment trends; and RAC audits.

The December board meeting was also a joint meeting with the medical staff, and Myers thanked the VMH Board of Directors and medical staff for their dedication and service. “The leadership of the board and caring and compassion of the physicians are big reasons why we are successful,” Myers said.