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Friday, Aug. 22, 2014

Hospital long-term debt decreased 10 percent

Thursday, October 25, 2012

Floyd Valley Hospital officials are working hard to pay the facility's long-term debt -- and succeeding.

The hospital's long-term debt decreased by 10 percent from 2011 to 2012, according to an annual audit performed by Denman & Company, of West Des Moines.

Mike Donlin, hospital administrator, said this, in turn, will demonstrate Floyd Valley Hospital's ability to take on more debt to finance the proposed north addition.

"We continue to pay down our existing debts and when we do the north addition financing we'll consolidate that all in one package," Donlin said.

The $20 million proposed north addition concept includes a two-story addition with surgical operating rooms and administrative offices on the top floor and a new family medicine clinic on the lower level, along with renovations in the existing hospital building.

The hospital's annual audit also determined the facility had earned more revenue than it spent, although some income areas were lower than anticipated, Donlin explained.

"After we paid our bills and reconciled all our accounts, we came out $225,000 ahead," he said.

Patient revenue totaled about $29.2 million during the 2011-12 fiscal year, a 5 percent increase from the previous total of $27.7 million, according to audit numbers.

Donlin said inpatient volume numbers were down for the year, which he attributed to several factors.

"One thing that happens in our business sometimes is that people don't get sick on a budget schedule," he said.

Donlin said traditionally the first couple months of the quarter are slow, but with the flu season here he expects inpatient numbers to increase.

Even though inpatient numbers are down, he said other patient care areas are up.

"Births are up. Our surgeries are up," Donlin said. "It's the ebb and flow of business."

Overall hospital revenue is up 5 percent from a year ago; however, operating expenses were up 6 percent, he said.

"It's a small tick but it's meaningful so we have to watch our expenses," Donlin said.

Operating expenses other than salaries went up 9 percent, from $13.7 million in 2011 to nearly $15 million in 2012, according to the audit report.

"We take a look at these things and try to find some savings in our other operating expenses," Donlin said.

He added that overall the hospital is in good shape financially, but the increase in operating expenses will need to be watched.

"We have to roll up our sleeves and do the right thing," Donlin said.

The Floyd Valley Hospital Board of Trustees and the Le Mars City Council approved the hospital's annual audit at their meetings last week.



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