MASSENA - A check for nearly $2 million helped Massena Memorial Hospital have another profitable month in August.
But its a check CEO Charles F. Fahd II said they really dont want to receive.
Chief Financial Officer Jim Smith said they received $1.75 million in federal funds as a low volume adjustment for 2012. That money, according to Mr. Fahd, means that the hospital saw greater than a 5 percent decrease in the number of Medicare admissions during the adjusted year.
Its obviously a lot of money. Its nice to get it, but the reasoning for getting it is not a good thing. The only time we are allowed to have an adjustment is if volume drops significantly, he said. You cant count on it every year. You shouldnt count on it every year. Its not a good thing.
In order to receive the money, hospital officials had to show that they were making a significant effort to decrease their costs, including downsizing staff or decreasing expenses, any way that you can show them that you have attempted to decrease your costs, Mr. Fahd said.
Mr. Smith said that, with the low volume adjustment, their August financials were significantly better than they had predicted.
It turned a very poor revenue month into a pretty good revenue month. It showed us to be 5 percent over budget. Previously we were well over 10 percent below budget, he said.
Overall, the hospital has a profit of $508,384 in August. They had budgeted a profit of $118,358. They had turned a profit of $19,541 in August 2012.
What ended up happening is the net bottom line, which was going to be negative $450,000, ended up being positive $508,000, Mr. Smith said.
Hospital officials had budgeted 217 inpatient discharges for August and finished the month with 177, 18.43 percent below budget. They had recorded 228 inpatient discharges in August 2012.
Observation visits, however, were 7.02 percent above what they budgeted. They had budgeted 57 observation visits for August and finished the month with 61. Thats up from the 56 they recorded in August 2012.
Outpatient registrations finished the month at 10,950, which was 3.50 percent below their budget of 11,347 for August. They had 11,350 outpatient registrations in August 2012.
Outpatient visits were down somewhat, but not to the same degree that the inpatient volumes were, Mr. Smith said, noting that some of that was attributable to vacations by medical staff during that month.
Net patient revenue for August had been budgeted at $4.14 million and MMH finished the month with $4.36 million, a 5.52 percent increase over their budget. It was $3.88 million in August 2012.
Net patient revenues originally were $850,000 below budget prior to receiving the low volume adjustment, Mr. Smith said
They were able to add the money from the low volume adjustment to the August budget because it was received quickly, according to the chief financial officer, who said they had received a letter dated Sept. 16 noting them that they would have the cash within 30 days.
It ended up arriving in six days and was deposited Monday, he said.
Year-to-date, the hospital revenues remain $1.4 million under budget. At this same period last year they were $1.6 million under budget.