Hospital Posts Loss Though Finances Strong

Olney Hamilton Hospital reported an operating loss in May, but board members said one-time accounting adjustments and continued growth in patient services indicate the district remains on solid financial footing as it prepares to open its new hospital later this year.

Finance Committee Chairman Lonnie Rue presented the hospital’s monthly financial report during the June 26 meeting of the hospital’s board of directors.

Cash on hand decreased by about $76,000 during May, while the hospital spent approximately $2.6 million on the construction of the new replacement hospital. Total outstanding debt stood at just under $59 million, including financing for the new facility. Accounts payable increased by about $1.1 million, primarily because construction costs incurred late in May had not yet been paid.

Mr. Rue reported an operating loss of approximately $700,000 for the month and a year-to-date operating loss of about $605,000. The hospital posted a monthly net loss of roughly $578,000 and a year-to-date net loss of $424,000.

Much of the month’s loss stemmed from an $800,000 contractual adjustment involving insurance reimbursements rather than a decline in patient activity.

Despite the accounting adjustment, Mr. Rue noted that the hospital’s gross patient revenue increased 23 percent compared with the same period last year, while total operating revenue rose 10 percent to about $6.2 million. Nursing home Quality Incentive Payment revenue also climbed sharply, increasing 270 percent from the previous year.