Audit shows hospital operating in black

Floyd Valley Hospital made less money during fiscal year 2008-09 than the previous year -- but it's still on solid ground according to its annual audit report.

The report stated the hospital's operating income was $517,000 in 2008-09 compared to $878,000 in 2007-08.

"We have less money left over after paying all our bills," said Mike Donlin, Floyd Valley Hospital (FVH) administrator. "(But) we're on sound footing and we continue to run a sound financial institution."

Expenses increased 7 percent from $21.7 million to $23.1 million while patient revenues increased by 4 percent to $21.6 million.

"The company that did our audit said of the other 13 hospitals they've done this year 70 percent of them are in the red," Donlin said.

So being in the 30 percent that are operating in the black is a good place to be, he said.

FVH's expense increase for fiscal year 2008-09 can be found in a variety of places.

Those range from adding new programs to preparations made for the merger between the hospital and Medical Associates, Donlin said.

"Acquiring those assets from Medical Associates was a million dollars or something like that so you can see the jump," Donlin said.

Increased expenses also result from costs to construct the Remsen Clinic last year, he said.

"The money we earn in Remsen and the money we earn in the clinic next door will help us pay stuff down," Donlin said.

The important aspect, he said, is that even though expenses increased so did revenue.

"We're part of the minority of hospitals that are keeping our head above water," Donlin said. "That is good."

The FVH Board of Trustees and the Le Mars City Council approved the hospital's 2008-09 audit Tuesday.