Title
Receive the Natividad Medical Center Financial Report for June 30, 2014.
Report
RECOMMENDATION:
It is recommended that the Monterey County Board of Supervisors' Budget Committee receive the Natividad Medical Center Financial Report for June 30, 2014.
SUMMARY:
The Monterey County Board of Supervisors Budget Committee has charged NMC Administration to report monthly on the financial status of the institution.
For the month of June 30, 2014 the average daily inpatient census (ADC) was 87.4 compared to a budget of 94. Medical/Surgical, ICU, Pediatric, and OB/GYN patient days were below the budget for the month, while NICU, Acute Rehabilitation, and Mental Health were higher for the month. Adjusted patient days (including both inpatient and outpatient volumes) totaled 3,937 compared to budget of 3,944, an unfavorable variance of 0.2%. Emergency Department visits were higher than budget by 1.4%.
Actual net income for the month was $0.2 million compared to a budget net loss of $0.2 million. Net patient revenues totaled $10.8 million compared to a budget of $10.8 million. Revenues from Government funding totaled $3.9 million compared to a budget of $3.1 million. Other operating revenue totaled $0.6 million compared to a budget of $0.4 million. Operating expenses for the month were $15.2 million compared to a budget of $14.6 million. Unfavorable operating expense variances were noted in the areas of Salaries, Wages, & Benefits of $729,000, Registry expense of $24,000, Phys/Residents SWB & Contract Fees of $142,000, Supplies of $121,000, Utilities & Telephone Expense of $37,000, and Other Operating Expense of $124,000. Cost per adjusted patient day was higher than budget by $167.00 or 4.5%.
The average daily inpatient census (ADC) for the year-to-date ended June 30, 2014 was 93.3 compared to a budget of 94. Medical /Surgical, Pediatrics, and OB/GYN were below budget while NICU, ICU, Acute Rehabilitation, and Mental Health were above budget. Adjusted patient days (including both inpatient and outpatient volumes) totaled 48,935 compared to a budget of 47,325, a favorable variance of 3.4%. Emergency Department visits year to date through June 30, 2014 were above budget by 0.3%.
Actual net income for the year-to-date ended June 30, 2014 was $0.4 million compared to a budget net loss of $2.6 million. Net patient revenues totaled $132.5 million compared to budgeted net patient revenues of $129.6 million. Revenues from Government funding totaled $47.3 million compared to the budget of $37.7 million. Other operating revenue totaled $4.5 million compared to a budget of $5.1 million. Operating expenses for the year-to-date ended June 30, 2014 totaled $184.8 million compared to a budget of $175.1 million. Unfavorable operating expense variances were noted in the areas of Salaries, Wages, & Benefits of $4,273,000, Registry Expenses of $1,790,000, Phys/Residents SWB & Contract Fees of $1,218,000, Purchased Services of $980,000, Supplies of $1,095,000, Utilities and Telephone Expense of $393,000, and Other Operating Expense of $356,000. Cost per adjusted patient day was higher than budget by $77.00 or 2.1%.
Year-to-date through June 30, 2014, the balance in cash including $3.2 million for the Seaside Clinics reserve was $50.6 million. This balance excludes the cash of $14.2 million in the County of Monterey’s NMC Reserve Fund. Collections from patients and various payers were $11.7 million for the month.
Patient receivables were $21.6 million. Distribution by payer: 21.0% Medical, 14.9% MediCal Managed Care, 19.3% Medicare, 43.5% Commercial, 0.6% Self Pay, and 0.7% Short Doyle. Distribution by aging: 26.5% In-House and under process, 58.0% between 0-60 days, 15.2% between 60-181 days and 0.3% over 181 days.
State and County receivables decreased by $1.0 million primarily from payment received for the DSRIP program.
DISCUSSION:
NMC’s Financial Statements as of June 30, 2014 are attached and will be presented by NMC staff at the scheduled meeting of the Budget Committee on August 27, 2014.
OTHER AGENCY INVOLVEMENT:
No other County agency participates in this reporting.
FINANCING:
There is no impact on the General Fund.
______________________________________
Kelly O’Keefe, Interim Chief Executive Officer
Natividad Medical Center
Date: August 14, 2014
Prepared by Daniel Leon, CFO
Attachment: June 30, 2014 NMC Financial Statements