Slower patient volumes result in slight loss in December for VMH

by Brianne Eilers

The month of December proved to be a slower month for Veterans Memorial Hospital (VMH) in Waukon, ultimately resulting in a loss of $2,833 for the month. Year-to-date, the hospital is showing a $29,284 loss. VMH administrator Mike Myers noted that the poor financial showing in December was due to several revenue areas being down, most notably, skilled patient days were down 27.6% and outpatient physical therapy was down 25.5%.
Year-to-date inpatient revenue was at $3,338,317, down 10.6% from last year-to-date, and outpatient revenue was at $6,290,263, down 3.1%. With both of those areas being down, the gross patient revenue total of $9,628,580 was down 5.8% from last year-to-date. “The thing that I’m really proud of, though, is that we continue to be under budget with our expenses,” Myers pointed out. Total expenses for December 2010 were 3.4% under budget. All in all, VMH ended up with a -0.4% profit margin in December, which is far from the hospital's target. “That’s not where we want to be, especially when we’re going into budgeting,” Myers noted, adding that January 2011 is looking much more promising financially, and has been one of the busiest months during his 12-plus years at VMH.
Other bright spots in a disappointing financial month include the fact that VMH has $2,407,000 in cash reserves, and the days of revenue in accounts receivable is at 67.5, which Myers noted is the lowest he has seen it in his time at the hospital. Myers also noted that VMH had “quite a few” charity care applicants.
VMH is putting together its Operating Budget for the upcoming fiscal year. Some of the things being looked at when considering how things will be budgeted include the possibility of a six-percent charge increase, as well as taking into consideration salaries, insurance premiums, and equipment needs for day-to-day operating.
VMH is also becoming more aggressive in become an “employer of wellness.” Myers explained that means the hospital is looking at offering testing and giving employees incentive to live a healthier lifestyle that enhances their own health, as well as to manage chronic illness and prevent illnesses. “Every one dollar you spend on wellness is saving two and a half dollars,” Myers stated.
In other matters, the OB project is moving along. There was a small glitch with some tiling being cut to a wrong size, but the birthing tub will eventually be moved back into the designated room. Currently, it is still being utilized, and Myers noted that January has been a busy month in OB, as well as the rest of the hospital. The clinics continue to recruit; an orthopedic surgeon from Gundersen Lutheran visited.
The VMH Board of Directors held its election of officers, and Dennis Lyons is the chairperson, Dave Stangeland is vice chairperson and Patty Fosaaen is the secretary. The Board passed a motion to make VMH a weapons-free zone. “We feel that is appropriate to have that here,” Myers stated. He also noted that the Christmas Fantasy held in 2010 was the most successful one the hospital has had, and VMH thanks the community for all the support in this event. The ICN is now run to the hospital, they are just waiting on electronics.
On a final note, Veterans Memorial Hospital will be holding an open house in honor of the hospital’s 60th Anniversary in serving the community. The open house will be Tuesday, February 8 from 5 to 7 p.m. at the hospital’s Main Entrance. There will be refreshments, tours and a history of VMH, blood pressure checks, entertainment and the introduction of the memorial “Caring for All” Donor Wall. The public is invited to attend.