Olney Hospital Briefs
Surgery and patient volume boost hospital income Olney Hamilton Hospital is experiencing a major turnaround in its finances, with a $1-million swing in operating income compared to the same period last year. Hospital Administrator Mike Huff credited the improvement to increased surgical procedures and higher patient volumes. “Surgery has really been cranking,” Mr. Huff told the board, adding that the surge in activity is helping stabilize hospital revenues.
EMS consolidation talks underway with Archer County Board members heard that OHH is exploring a possible partnership with Archer County to consolidate emergency medical services, following new state funding to replace rural ambulances. Mr. Huff said that the two counties together could access as much as $800,000 to spend on EMS services, which could include purchasing a new ambulance to serve both territories and leasing a temporary truck from Archer County’s provider, AMR, until a permanent vehicle arrives. Archer County leaders are also planning for growth: they expect tax revenue from a proposed data center project to fund a new EMS bay and expand their only medical clinic, which OHH currently operates.
Federal funding prospects uncertain
Mr. Huff also noted that OHH may see additional money from the federal government, citing $50 billion set aside for rural hospitals in President Donald Trump’s “Big Beautiful Bill.” However, details about eligibility and allowable uses remain unclear. “We don’t know anything yet,” Mr. Huff said. “It might be a lot of money. We don’t know how much or what it can be spent on.” Board members agreed that, if available, the funds could help OHH continue its financial rebound and invest in facilities and staffing.
West Hamilton Street to remain closed during construction Board President Dale Lovett told members that West Hamilton Street will remain closed until exterior construction on the new hospital is finished. Originally, officials considered reopening the road once the large crane was removed from the site, but Mr. Lovett said the disruptions of closing and reopening the street again would outweigh the benefit. “We made contact with the city and school district. We could reopen it when the crane leaves,” Mr. Lovett said. “It would be disruptive again, so why can’t we keep it closed? We’ll look after construction, and right now as of this point we are not breaking a promise.” The closure is expected to remain in effect until the hospital nears completion.
Nursing home contract renegotiation looms The hospital may be forced to renegotiate a key contract with a nursing home chain that pays OHH to oversee operations at several of its facilities. Mr.nHuff reported that one of the nursing homes will close Dec. 1, which could cost the hospital about $200,000 in lost revenue. In addition, the nursing home chain is considering adjusting the revenue-sharing formula from a 60-40 split to 70-30, a change that would further reduce OHH’s share.
Historic designation could affect parking plans As part of its financing strategy, OHH is pursuing additional funds through the federal New Markets Tax Credit program, which could help renovate the 1920s wing of the original hospital into an administration building. A program representative toured the hospital this month to assess the building’s historic value, board member Lyndsey Miller said. While the representative confirmed the 1920s structure likely qualifies, they also suggested that the 1964 addition could be designated historic as well. That could complicate the hospital’s tentative plan to demolish the 1964 section and expand parking for patients and staff. Mrs. Miller said the designation remains under review, but if it stands, it may force the hospital to adjust its long-term site plan.
Financial report shows positive trajectory Board member and finance chair Lonnie Rue presented details of the hospital’s nearly $1 million swing from loss at this time last year to profit.
September operating income totaled $732,000, compared to a $772,000 loss last year. Year-to-date operating income is $452,000, and net income stands at $178,000, up from a $720,000 loss at this time last year.
Mr. Rue described the financial progress as evidence the hospital is “on a good trajectory,” even as the hospital continues to manage $34 million in debt, including bonds for new construction.
He noted that the hospital paid $1.6 million in construction costs in September, leaving $34 million in outstanding debt, including bonds issued for the new hospital project. Still, financial performance is trending upward.
Net income for the month was $600,000, compared to a $720,000 loss last year. Year-to-date patient revenue stands at $37 million, up 6.7 percent from last year, and as much as 22 percent higher depending on patient volume calculations.
Mr. Rue cautioned that collections remain an ongoing challenge, with the hospital collecting only 35 percent of its patient billings. He also flagged uncertainty surrounding proposed federal cuts to the Affordable Care Act.
“Will the Affordable Care Act changes change hospital operations?” Mr. Lovett asked.
Mr. Rue responded: “My thought is they are not going to do anything to help the hospital.”