ALPENA - Alpena Regional Medical Center Finance Cost Containment Committee had a larger loss than anticipated in its November finances, with a little over $138,000 less than the hospital had budgeted.
"We had anticipated we would have a slight loss in the month of November," George Smart, vice president of finance and information systems, said. "However, we had a much larger loss than anticipated. Our inpatient volumes were off in the month of November, however the outpatient volumes seem to remain strong."
November operating fund disbursements were $10,106,135. R&I disbursements totaled $529,930, and write-off of uncollectible patient accounts amounting to $519,147 with recoveries of $49,915.
"We continue to run well as far as operating expenses in relation to budget," Smart said. "We're actually 3.2 percent better than expectations."
A review of December financial reports was also approved at the committee meeting, with an overall net operating revenue of $11,178,350.
"We had planned from a budget standpoint that we would begin the month with a loss," Smart said. "The inpatient volumes did underperform during the month, however we had a good outcome from a standpoint of length of stay. Outpatient services was an area that was up and actually exceeded planned for the month."
Surgeries continue to increase, with an 8 percent increase over plan for the month, and on a year-to-date basis, outpatient surgeries are up 11 percent.
Outpatient services were 6 percent better for December than planned, and inpatient was again low in December, and fell short by eight percent.
The six month financial statements show that outpatient volumes on a year-to-date basis, ARMC is within 0.1 percent of what was anticipated. The inpatient volume is down about ten percent, and the length of stay is very favorable into the budget at this point.
At the end of six months, Smart said he thinks ARMC is in very good shape in comparison to what was planned in the budget, and anticipates a few unknowns with the expanded medicaid implemented between now and April. Based on the first half of the year, Smart said the hospital is in good shape as far as net operating revenue.
"I think what's most remarkable about the six month financial statements is how the budget process was so close. I think that's an indication of understanding what our services are," Vice Chair Marie Williams said. "I feel like we, in the budget process, understand our market and we've done a good job here of estimating where we're going to be."
December operating fund disbursements were $9,577,536. R&I disbursements were $117,386, and write-off of uncollectible patient accounts totaled $450,765, with recoveries of $70,904.
Nicole Grulke can be reached via email at email@example.com or by phone at 358-5687. Follow Nicole on Twitter @ng_alpenanews.