Title
Receive Natividad Medical Center's financial report for the fourth quarter (April through June 2026) of fiscal year 2026.
Report
RECOMMENDATION:
Receive Natividad Medical Center's financial report for the fourth quarter (April through June 2026) of fiscal year 2026.
SUMMARY/DISCUSSION:
Financial Results for the 4th Quarter (April 2026 to June 30, 2026)
For the quarter ending June 2026, Natividad reported an average daily inpatient census (ADC) of 117.1 compared to a budgeted 128.0, reflecting lower-than-anticipated patient volumes across most inpatient nursing units, including Medical/Surgical, NICU, Pediatrics, ICU, ARU, and Psychiatric Services. Total patient days were approximately 8.5% below budget for the quarter. Average adjusted patient days, which include both inpatient and outpatient activity, totaled 16,754 compared to a budget of 17,490, an unfavorable variance of 4.2%. Emergency Department visits were also below expectations, declining 5.0% from budgeted levels for the quarter.
Despite lower patient volumes, the hospital reported a small positive net margin of $577 thousand for the quarter compared to a budgeted positive margin of $772 thousand. Net patient revenue totaled $80 million, which was $1.6 million (1.9%) below budget, primarily attributable to lower inpatient revenue performance. Government funding revenue of $25.5 million was consistent with budget projections. Other operating revenue exceeded budget by 65.2%, totaling $7.0 million, largely driven by higher interest earnings and quality incentive payments received from Central California Alliance for Health. Interest income alone exceeded budget by approximately $1.1 million for the quarter.
Operating expenses for the quarter totaled $111.9 million, 1.2% above budget. Salaries and benefits exceeded budget by $2.4 million, primarily due to cost-of-living adjustments and higher benefit costs, while physician-related costs exceeded budget by $924 thousand. These incre...
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