VMH nears completion of fiscal year with May loss, continues high satisfaction trend

Heading into the close of its current fiscal year, Veterans Memorial Hospital (VMH) in Waukon experienced a slight financial loss of $3,755 for the month of May, but reports coming out of the Tuesday, June 28 meeting of the hospitals Board of Trustees weren't all as negative as that monthly bottom line figure.
VMH Administrator Mike Myers reported that the hospital's most recent quarterly report (March through May) from its Press-Gainey survey system on quality care indicate that patient satisfaction placed in the 99th percentile for Emergency Room (ER) patients and in the 98th percentile for hospital inpatient care. "Numbers like that indicate that we could very well be on our way to a second Summit Award for our ER, and quite possibly our first Summit Award for inpatient care," Myers said. "I am so proud of our staff here."
The statistical and financial numbers for the month of May indicate that acute patient care days and outpatient physical therapy showed the greatest increases during the month from last year to this year while also providing the greatest percentage increase in year-to-date numbers. On the reverse side of that trend, skilled patient days showed the most significant decrease for May from last year to this year, continuing a trend that reflects a 25.7% decrease year-to-date in that service area.
Despite the May loss, VMH shows a year-to-date net income of $148,169, which reflects a 1.2% profit margin for the year and a nearly 41% decrease from last year's bottom line. Myers said the hospital doesn't know just yet how Medicare payments will further impact that bottom line, but the facility's 11-month audit currently underway will give a clearer picture.
The hospital's days of revenue in accounts receivable continues to dwindle, down to 63.4 days in comparison to last May's 74.2 days and even last month's 64.1 days. In addition to that better financial news, Myers reports that the hospital now has $3 million in cash reserves, its highest total ever. "Those numbers indicate that this is the best cash flow year in the history of this hospital," he explained.
Myers further explained that controlling expenses has proven to be the difference in the hospital showing its positive year-to-date bottom line, as expenses are down 3.9% year-to-date. "If our expenses had even been at what we had budgeted for, we would be showing a significant loss right now," he said.
Obstetrics continues to be an area of growth for VMH, drawing patients from neighboring counties. "It's the water birth experience that's been the driving force there," Myers said. "They like that a lot."
Myers said the Board of Trustees also approved the largest capital expenditures budget for the hospital in his tenure at the VMH helm, a total of $455,934. He did indicate that about half that amount is for replacement of the hospital's elevator system, with another $76,000 slated for an upgrade in the hospital's information systems to further accommodate a move to electronic medical records. Myers also explained leasing a chemical analyzer and other lab equipment expenditures are part of that overall capital budget. He also indicated that computer installation is nearing completion for thoracoscopic services conducive for swallow studies that will be conducted at VMH in the very near future.
Reports on other meetings were also part of Tuesday's Board of Trustees meeting, as Myers indicated that discussions with Gundersen-Lutheran have been taking place in regard to healthcare services in the area and how the two institutions can work together to address area needs. Myers said the hospital continues similar efforts with the Franciscan Skemp/Mayo system. "How fortunate we are to have the services of two outstanding organizations like these in Waukon," he remarked.
Myers also reported on his attendance at a Summer Forum sponsored by the Iowa Hospital Association, with a session conducted by an economist from George Mason University dealing with national debt and future finances particularly capturing his attention. With cuts and other financial measures being at the forefront of the national debt discussion, the presenter indicated that Critical Access hospitals, such as VMH, would be more immune to the severity of such measures with their cost-effectiveness and being a major employer in smaller communities. He also indicated that a trend in reimbursement expected on the horizon would see a shift from being paid for treating sick patients to, instead, being paid for keeping patients well, with electronic medical records playing a key role in that process and that message further confirming VMH's projected upgrade to its information system.
The overall message Myers took away from that Forum presentation was maintaining a focus on being conservative, something he says has been VMH's mission all along. "We're not a flashy hospital with a fountain or piano in the lobby," he said. "We're just good people who take the very best care of our patients that we can."