Title
Receive the Natividad Medical Center Financial Report for October 31, 2017
Report
RECOMMENDATION:
It is recommended that the Monterey County Board of Supervisors' Budget Committee receive the Natividad Medical Center Financial Report for October 31, 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 October 31, 2017 was 110.0 as compared to a budget of 104.9. PEDs, OB/GYN and Mental Health patient days were below the budget for the month, while NICU, Medical/Surgical, and Acute Rehab were higher than budget for the month. ICU was at budget for the month Adjusted patient days (including both inpatient and outpatient volumes) totaled 4,897 compared to budget of 4,617, a favorable variance of 6.1%. Emergency Department was higher than budget by 17.8%.
Actual net income for the month was $8.1 million compared to a budget net income of $0.8 million. Net patient revenues totaled $21.4 million compared to a budget of $18.9 million. Net revenues improved by 13.3% from improved payer mix. Revenues from Government Funding totaled $8.7 million compared to a budget of $3.6 million. Medi-Cal Managed Care Rate Range FY15/16 was received, exceeding preliminary estimates. Other operating revenue totaled $0.5 million compared to a budget of $0.6 million. Operating expenses for month were $22.4 million compared to a budget of $22.3 million. Unfavorable operating expense variances were noted in the areas of Salaries, Wages, & Benefits of $231,486, Registry of $107,44, Physician Expense of $225,295, Insurance of $17,792, Utilities and Telephone of $37,887 and Other Operating Expenses of $21,603. Cost per adjusted patient day was lower than budget by $247 or 5.1%. Net revenue per adjusted patient day was higher than budget by $1,247 or 25.0%.
The average daily inpatient census (ADC) for the year-to-date ended October 31, 2017 was 109.3 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 19,247 compared to budget of 18,318, a favorable variance of 5.1%. Emergency Department visits year to date through October 31, 2017 were higher than budget by 17.3%.
Actual net income for the year-to-date ended October 31, 2017 was $14.9 million compared to a budget net income of $3.1 million. Net patient revenues totaled $82.4 million compared to a budget of $75.5 million. Net revenues improved by 9.2% from improved payer mix. Revenues from Government Funding totaled $20.1 million compared to a budget of $14.4 million. Other operating revenue totaled $2.0 million compared to a budget of $2.4 million. Operating expenses for the year-to-date ended October 31, 2017 were $89.5 million compared to a budget of $89.2 million. Unfavorable operating expense variances were noted in the areas of Salaries, Wages, & Benefits of $1,410,045, Registry of $207,704, Physician Expense of $601,699, Insurance of $69,594 and Utilities/Telephone of $187,393 and other operating expense of $37,664. Cost per adjusted patient day was lower than budget by $219 or 4.5%. Net revenue per adjusted patient day was higher than budget by $390 or 7.7%
Year-to-date through October 31, 2017, the balance in cash - Fund 451 - including $3.2 million for the Seaside Clinics reserve was $91.4 million. Collections from patients and various payers were $21.5 million for the month.
Year-to-date through October 31, 2017, the balance in cash Fund 404 was 21.0. Expenditures for Fund 404 as of October 31, 2017 was $0.0.
Total expenditures for capital as of October 31, 2017 were $3.1 million. Remaining balance for capital expenditures for the year is $25.6 million.
Patient receivables were $35.8 million. Distribution by payer: 9.0% MediCal, 9.7% MediCal Managed Care, 13.8% Medicare, 65.4% Commercial, 0.1% Self-Pay, and 2.0% Short Doyle. Distribution by aging: 24.3% In-House and under process, 48.8% between 0-60 days, 26.6% between 60-181 days and 0.3% over 181 days. Accounts receivables days are 58.7.
DISCUSSION:
NMC’s Financial Statements as of October 31, 2017 are attached and will be presented by NMC staff at the scheduled meeting of the Budget Committee on December 15, 2017.
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: December 4, 2017
Attachment: October, 2017 NMC Financial Statements