VMH dealt tough financial October, but also experiences some positives

by Brianne Eilers

The month of October was a disappointing month for Veterans Memorial Hospital (VMH). Administrator Mike Myers noted that the inpatient numbers are down year-to-date from last year. Acute patient days were down 4.7%, while skilled patient days were down 34.8%. Outpatient areas also suffered from low volumes as well. Outpatient physical therapy was down 25.6%, while radiology was down 12.7%, outpatient lab was down 3.1% and emergency room visits were down 6.4%.
“We could have lost $125,000,” Myers explained as a result of the low patient volumes, but VMH was able to use some of the funds that the recent audit shows the hospital will be receiving from Medicare to cover some of that. In the end, there was still a $77,537 loss for October. Year-to-date, VMH is showing a net income of $15,705.
“We’re still above break-even, but barely,” Myers noted. “A lot of our volumes are down, and the thing that really saved us from having a super-horrendous month was that our expenses were down 10% for the month of October.” He continued on to state that without expense control, the situation could have been a lot worse, financially. He also noted that it’s hard to tell at this point what November will bring.
On a more positive financial note, VMH’s cash reserves are up over $2 million, whereas last year at this time, it was between $1.3 and $1.4 million. The number of days in accounts receivable is down to 68.9, versus 81.2 at this time last year. The hospital has been able to turn the money it is owed into cash and put that in the bank to get through lean times, and the hospital will also continue on with plans to remodel and do a few upgrades, such as the recent project to remodel the operating room.
“We are just going to be prudent about what we do,” Myers said. Upcoming projects include a remodeling project for the OB unit, which is scheduled for January of 2011. A new elevator will be installed in May or June of 2011, and VMH is working on getting bids out for that project. On the ICN project front, the ICN cable has been run to the building, though not yet into the hospital. That project should be wrapping up by year’s end.
The Christmas Tree Fantasy was again a successful event. “Thanks to the support and generosity of all those involved, and I don’t have the exact figures yet, it made over $20,000 and it might be $21,000,” Myers noted. Myers further stated that VMH “deeply appreciates” the support the community gives to this event.
In other matters, VMH continues to work with Northeast Iowa Behavioral Health Center to enhance care and treatment.
VMH was the recipient of a Summit Award for the emergency room at VMH. This award recognized VMH as being in the top five percent of hospitals nationwide for each consecutive quarter for the last three years. The results are based on patient satisfaction surveys sent out by VMH. See next week’s edition of The Standard for more details.