Mar 31, 2016 - Through the first six months of FY16, ending March 31, 2016, the Hospital and Subsidiaries achieved an ..
Concord Hospital, Inc. Un-Audited Financials Six Months thru 3/31/2016 Management Comments Through the first six months of FY16, ending March 31, 2016, the Hospital and Subsidiaries achieved an Operating Margin of 3.1% and a Total Margin of 5.3%. The Hospital saw strong inpatient activity across many areas complemented by increased complexity for its admissions. Hospital outpatient activity was slightly ahead of expectations in most areas, adjusting for the shift of Dartmouth Clinic referrals to their in-house services. Physician Practice activity was slightly behind expectations as primary care visits were down offset with strong specialty visits. Payment rates have improved from expectations, with a higher percentage of commercial and less governmental payors. Improved management of patient throughput has helped lower lengths of stay, contributing to better payment ratios. Salary and benefit expenses were up vs. budget as the hospital implemented market adjustments for many staff and clarified other pay rules. Operating expenses were higher in the quarter as staffing levels remained high in support of the strong inpatient census and improving outpatient volumes. Efforts to reduce length of stay and improve patient throughput were starting to show results. Case mix was up 7.5% over prior year’s levels and length of stay was down by almost 1/3 of a day. Non-salary expenses were consistent with expectations. The Hospital has decided to fully replace its Clinical, Ambulatory and Rev Cycle systems, moving to the Cerner Millennium platform. Implementation for that has begun with a planned “DAY ONE” to begin in late spring 2017. In addition, the Hospital is implementing the Workday platform to replace it’s Human Capital and Financial reporting systems. Much progress has been made as we approach our cutover for the start of next fiscal year. The Hospital posted non-operating revenues of around $4.8 million, compared to $8.1 million in the prior year. Overall, as general market performance was positive, unrestricted net assets grew by over 5.2% or $ 13 million. Days cash on hand ended the quarter at 239 days, reflecting strong cash reserves as days in receivables were maintained in the lower-40’s, and capital spending remained moderate. We expect to make our annual MET tax payment ($18.4 Million) in the next quarter as well as receive a Disproportionate Share Hospital (DSH) payment as well. The DSH payment is dependent on overall State Tax revenues and uncompensated care costs. These will be determined during the next quarter.
Respectfully submitted;
Bruce R. Burns Chief Financial Officer& Senior VP
Concord Hospital Consolidated Statement of Revenues & Expenses For the period ending March 31 (in thousands) Unaudited Year-to-Date Ending March 31 2016 Net patient revenues
$209,274
2015 $210,820
Other operating revenues
11,035
12,243
Operating revenues
$220,309
$223,063
Salaries & benefits
$129,945
$121,652
Services & supplies
60,191
72,976
Depreciation & interest
14,171
14,276
Medicaid enhancement tax
9,151
8,400
Operating expenses
$213,459
$217,304
6,850
5,758
Gain from operations Non-operating revenues Excess of revenues over expenses
4,818
8,102
$11,668
$13,860
Concord Hospital Consolidated Balance Sheet (in thousands)
Unaudited 03/31/16
Cash & other current assets Long-term investments Property, plant & equipment-net Other assets Total assets Current Liabilities Long-term liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted Total liabilities & net assets
Guide to Statement of Revenues and Expenses Net PatientService Revenues Revenues expected to be collected for services provided net of any amounts set aside for Community Charity care and Uncompensated care. Gain from Operations Excess of revenues over expenses from all patient and contract services Non-operating revenues Includes revenues and losses from investments, contributions and support from endowments.
09/30/15
$70,680 303,375 149,462 10,754 $534,271
$78,247 297,513 148,705 16,782 $541,247
$67,499 170,247
$81,856 176,706
261,510 15,357 19,659 $534,271
248,381 14,860 19,444 $541,247
Guide to Balance Sheet Long-term investments Includes funds restricted by donors or outside agencies, as well as funds designated by the Board for long-term investment. Net Assets Represents the value of Concord Hospital and subsidiaries that is available to meet future facility, equipment and strategic needs. Temporarily restricted represents funds restricted by donors for specific purposes. Permanently restricted represents funds restricted by donors to be maintained as a permanent endowment with earnings to be used to support hospital activities.
CONCORD HOSPITAL MARCH 31, 2016 Revenue Drivers Surgical Cases
Admissions IP & OBV 1,700
950
1,600 1,500
900 850
1,400 1,300
800
1,200
750
1,100 1,000
700
900 800
650
Outpatient Radiology Tests
Outpatient Lab Billable Tests
8,500
85,000
8,000
80,000
7,500
75,000
7,000 6,500
70,000
6,000
65,000
5,500
60,000
5,000 4,500
55,000
4,000
50,000
ER & WIC Outpatient Visits 5,500 5,300 5,100 4,900 4,700 4,500 4,300 4,100 3,900 3,700 3,500
Physician Office Visits 32,000 30,500 29,000 27,500 26,000 24,500 23,000
OP Radiation Oncology Treatments
Cardiac Cath Lab Units 240
1,200 1,150
220
1,100
200
1,050 1,000
180
950
160
900 850
140
800 120
750
Actual
Budget
Prior Year
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Prior Year No DHC
