Trustees are projecting a $4.5-million financial turnaround for Dosher Memorial Hospital’s current fiscal year that ends Sept. 30 – turning a deficit of $5.9-million in excess from operations a year ago into a positive $1.4-million by the end of this month.
Such a dramatic shift gives trustees confidence in the 2021-22 hospital budget recently approved that projects a $693,221 net gain in operations, despite a capital budget that also calls for $2.7-million in expenditures.
Higher than expected patient revenues are leading Dosher’s financial rally. The hospital netted $13.2-million in patient revenue in June, and early figures show $13.8-million will be collected in July. The hospital projected around $11-million per month.
“We are seeing a $4.5-million swing from this time last year,” said Trustees Chairman Robert Howard at the August 16 board meeting. “We are seeing the most revenue we’ve
made in any month. We commend the senior team for making this happen and the staff that has worked hard. You’ve started running the hospital like a 25-bed hospital and not a 100-bed hospital.”
The budget was presented to the board for approval by Dosher’s Chief Financial Officer Brandon Hughes, who was recently promoted to the position from Director of Finance.
Howard commended Hughes for helping guide the hospital’s financial turnaround.
“We’re counting on you going into the future,” said Howard.
The budget approved for fiscal year 2021-22 that begins Oct. 1 projects total patient revenue for the 12 months at $146.2-million, which will be an increase from the $143.5-million projected by the end of this month. It far exceeds the $120.1-million collected for fiscal year 2020.
The 2022 budget anticipates $51.6-million in total revenue after deductions and $50.9-million in total operating expenses for an excess from operations of $693,221. Dosher also projects $2,973,116 in non-operating revenue (mostly from the special Smithville Township 4-cent property tax used to support the hospital’s capital needs) for a total excess over expenses in 2022 of $3,666,337.
For the current fiscal year that ends Sept. 30, the hospital is on track to net $1,389,684 in excess from operations and $7,208,780 in non-operating revenue for a total of $8,598,464 in excess over expenses. For fiscal year 2020, the hospital finished with a deficit of $1,260,504 even after factoring in non-operating revenue.
Hughes told trustees that Dosher has also officially received forgiveness on its $3,454,200 federal COVID-19 Payroll Protection Program loan. He said the loan was used in 2020 to retain employees and make payroll during the height of the COVID pandemic. No Dosher employees had to be furloughed during the pandemic.
July looks to be one of the busiest months on record for Dosher with $13.8-million in patient revenue. Hughes said traffic is up in the emergency department and operating room procedures are increasing.
Hughes presented a three-year capital budget that calls for spending $2,712,198 in the upcoming fiscal year 2022, another $1,206,400 in fiscal year 2023 and $1,411,400 in fiscal year 2024. He told trustees hospital staff has prioritized what needs to be replaced.
Capital expenditures for 2022 include:
N Administration, $225,000, includes $150,000 for space uplift for pain management and $75,000 for architectural facility master plan.
N Medical records, $20,000, includes ongoing digitized records.
N Operating room, $418,600, includes equipment for increased volume, tables for spinal fusion and joint replacement.
N Lab, $25,750, for updating the lab area with new flooring and paint.
N Physical therapy, $26,083, for new and replacement therapeutic exercise equipment at the Wellness Center.
N Cardiopulmonary, $102,634, to replace old EKG and pulmonary function machines.
N Clinics, $14,200, for upgrades at 905 N. Howe Street doctor’s office.
N Imaging, $839,356, includes new C-ARM system, X-ray room replacement and equipment that will be compatible with new PACS servers.
N Plant operations, $620,000, includes a new roof, generator, cooling tower base replacement and unexpected costs.
N Dietary, $40,325, for new ovens and dishwashers.
N Patient care unit, $18,850, to replace old mattresses.
N Information systems, $361,400 to replace aging equipment, replace servers and increase storage for PACS.