Title
Receive the Natividad Medical Center Financial Report for November 30, 2017
Report
RECOMMENDATION:
It is recommended that the Monterey County Board of Supervisors' Budget Committee receive the Natividad Medical Center Financial Report for November 30, 2017.
SUMMARY:
The Monterey County Board of Supervisors Budget Committee has charged NMC Administration to report monthly on the financial status of the institution.
The average daily inpatient census (ADC) for the month of November 30, 2017 was 107.7 as compared to a budget of 104.8. ICU, PEDS and OB/GYN patient days were below the budget for the month, while NICU, Medical/Surgical, Acute Rehab and Mental Health were higher than budget for the month. Adjusted patient days (including both inpatient and outpatient volumes) totaled 4,754 compared to budget of 4,469, a favorable variance of 6.4%. Emergency Department was higher than budget by 17.2%.
Actual net income for the month was $2.5 million compared to a budget net income of $0.8 million. Net patient revenues totaled $19.4 million compared to a budget of $18.9 million. Net revenues improved by 3.1% from improved payer mix. Revenues from Government Funding totaled $3.8 million compared to a budget of $3.6 million. Other operating revenue totaled $0.7 million compared to a budget of $0.6 million. Operating expenses for month were $21.5 million compared to a budget of $22.3 million. Unfavorable operating expense variances were noted in the areas of Registry of $46,921, Physician Expense of $171,980, Insurance of $16,219, Utilities and Telephone of $105,095 and Other Operating Expenses of $35,207. Cost per adjusted patient day was lower than budget by $471 or 9.4%. Net revenue per adjusted patient day was lower than budget by $120 or 2.3%.
The average daily inpatient census (ADC) for the year-to-date ended November 31, 2017 was 109 compared to a budget of 104.9. PEDS and Mental Health patient days were below the budget for the period, while NICU, Medical/Surgical, ICU, OB/GYN and Acute Rehabilitation were higher than budget for the period. Adjusted patient days (including both inpatient and outpatient volumes) totaled 24,000 compared to budget of 22,787, a favorable variance of 5.3%. Emergency Department visits year to date through November 30, 2017 were higher than budget by 17.2%.
Actual net income for the year-to-date ended November 30, 2017 was $17.4 million compared to a budget net income of $3.8 million. Net patient revenues totaled $101.9 million compared to a budget of $94.3 million. Net revenues improved by 8.0% from improved payer mix. Revenues from Government Funding totaled $23.9 million compared to a budget of $18.0 million. Other operating revenue totaled $2.7 million compared to a budget of $3.0 million. Operating expenses for the year-to-date ended November 30, 2017 were $111.0 million compared to a budget of $111.5 million. Unfavorable operating expense variances were noted in the areas of Salaries, Wages, & Benefits of $1,084,650, Registry of $254,625, Physician Expense of $773,679, Insurance of $85,813 and Utilities/Telephone of $292,478 and other operating expense of $72,871. Cost per adjusted patient day was lower than budget by $268 or 5.5%. Net revenue per adjusted patient day was higher than budget by $289 or 5.7%
Year-to-date through November 30, 2017, the balance in cash - Fund 451 - including $3.2 million for the Seaside Clinics reserve was $128.5 million. Collections from patients and various payers were $21.9 million for the month.
Year-to-date through November 30, 2017, the Capital Reserve Fund (404) was $21.0 million and the Strategic Revenue Fund was $17.5 million.
Patient receivables were $36.8 million. Distribution by payer: 8.3% MediCal, 8.4% MediCal Managed Care, 11.4% Medicare, 70.2% Commercial, 0.1% Self-Pay, and 1.6% Short Doyle. Distribution by aging: 21.6% In-House and under process, 47.3% between 0-60 days, 30.9% between 60-181 days and 0.2% over 181 days.
DISCUSSION:
NMC’s Financial Statements as of November 30, 2017 are attached and will be presented by NMC staff at the scheduled meeting of the Budget Committee on January 31, 2018.
OTHER AGENCY INVOLVEMENT:
No other County agency participates in this reporting.
FINANCING:
There is no impact on the General Fund.
______________________________________
Daniel Leon, CFO
Natividad Medical Center
Date: January 17, 2018
Attachment: November 2017 NMC Financial Statements