RCH trustees receive updates

Ringgold County Hospital’s board of trustees met Monday, October 27 for the regular monthly meeting followed by a closed session.

Amy Mobley led off the meeting sharing some recent real time responses from outpatients using RCH services. Occupational Therapy and Imaging were noted for positive comments received including “the care is top notch,” “they make me feel like part of a team,” and “I appreciate the kind, caring and skilled staff, I am going to spread the word to all my friends.”

Clint Reynolds, CFO, stated the finance committee had met recently taking an in depth look at strategic initiatives, keeping a positive operating margin of 4.9% or greater and planning for utilization of Medicaid funds moving forward. Reynolds noted financials currently sit at a positive 11.3% operating margin through the first quarter.

In looking at the month’s report, inpatient revenue was over budget for the month by $202K and Outpatient revenue was under budget by $400K. Clinic revenue was under budget by $28K. Overall, gross revenue was under budget for the month by $227K. Net patient revenue was over budget by $266K with retail 340B net revenue $41K for the month. Total operating revenue was over $2.7M for September and $260K over budget for the month.

Salaries and wages were $32K under budget for the month and benefits were under budget by $149K. This is mainly due to self insurance claims and expenses being under budget. Contract labor was under budget by $12K. Several other operating expense line items were under budget for the month including fees, supplies, drugs, facility costs, repairs and maintenance. Depreciation and amortization expense was over budget for the month by $11K. There were several new assets placed into use in September which include: automatic door openers at the Dietary entrance and the restrooms in the main lobby, 2 new beds on the Acute floor, new flooring for Surgery, and a new microscope in Lab. Total operating expenses totaled $2.1M for the month, $238K under budget.

Total profit was $1,314,088 with the year-to-date bottom line showing a gain of $1.3M.

Marty Dubois, with Eide Bailley, LLP presented the audit review. Briefly summarizing, Dubois reported total assets increased $1.5M and capital assets increased $1.2M. In comparison to other Iowa Critical care facilities, RCH showed a total margin of 7.5%, up from 3.6%. The cash flow margin adds back depreciation and interest to determine how much cash is generated. This figure was at 11.9% up from 8% previously. The days cash on hand were 136 days, up from from 107. Outpatient services showing at 93% of services follows the national trend and falling right along with that growth and trend the percentages were 53% of medicare and 53% of services at a 1% loss. Salaries are the largest expenditure shown and are slightly higher than peers. In addition, Dubois noted the 340B program as a positive as it continues to grow for the organization.

In miscellaneous news:

Med staff appointments and reappointments were presented and approved with one initial appointment of Jurgen Weber, PA. All others were reappointments to Radiology.

Athletic trainer, Natasha Gourley has resigned. It was noted at the July RCH board meeting that Gourley had been working “quite a bit more time” beyond the original agreement with MACHS. Discussions were held to address the extra hours. At that time, MACHS Superintendent Jason Shaffer determined the school would be sticking to the 10 hours per week.Earlier this month several employees attended the Iowa Hospital Association meeting. Those attending were able to network with statewide peers and raised proceeds for women and families to provide goody bags, gas cards for chemo patients and help with mammograms.

The regular monthly meeting adjourned after all agenda items were addressed and the board went into closed session with a motion by Greg Jobe, seconded by Chris Elwood citing code 21.5.