Hospital financial successes praised
By Jared Nelson jnelson@timesleader.net
Thursday, February 02, 2006
A recent corporate comparison between the financial performances of Caldwell County
Hospital and the other hospitals under the management umbrella of QHR (formerly
Quorum Health Resources) shows the local hospital as one of the company’s top
performers.
Bob Green, regional president for QHR, spoke to the county hospital board recently
about the hospital’s financial standing and other issues during the board’s regular January
meeting.
Green said the company, which has been the hospital’s management firm since 1998,
routinely compiles a comparative database of its hospitals’ financial figures, as reported
by hospital chief fiscal officers.
Hospitals are measured against 13 financial indicators, including five key indicators:
operating margin, EBITDA (earnings before interest, taxes, depreciation and
amortization), days of cash on hand (in both accounts payable and accounts receivable),
supplies as a percentage of net revenue and salaries as a percentage of net revenue.
The hospitals are then ranked company-wide and region-wide, he said.
Out of 37 hospital’s in Green’s region, the Caldwell County Hospital ranked second in
overall financial performance. Company-wide, the hospital ranked eighth.
Hospital CFO Shane Whittington said the first six months of the 2005-06 fiscal year have
been strong.
He reported a December hospital operating income of $39,973 and a net income of
$73,563.
For the fiscal year to date, the hospital has recorded an operating income of $111,938,
compared to a budgeted operating income of $56,503, and a net income of $328,062,
compared with a budgeted net income of $247,001, he said.
Hospital board members also expressed pleasure with the results of a recent survey by
the Joint Commission on Accreditation of Healthcare Organizations.
CEO Charles Lovell Jr. said the hospital had its first Joint Commission survey as a
critical access hospital in December.
The hospital received two recommendations for improvement from surveyors: one
involving a language change in a contract with the hospital’s ER physician company and
one regarding fire walls and fire doors in the hospital.
No quality or patient issues were on the list for improvement, Lovell said.
Officials with the state fire marshal’s office have since visited the facility to help officials
update fire diagrams, he added.
“I think the staff and medical staff should be congratulated,” said board member Clarence
Traum. “We should be honored that the staff did so well.”
Board Chairman Donnie Davis extended thanks to Judy Griffin, the hospital’s quality
officer, Lovell and Whittington for their efforts.
The hospital’s home health agency was also surveyed and received no recommendations
for improvement, Lovell said.
In other business:
• Lovell updated board members about a developing wellness program for hospital
employees.
When the hospital renewed its health insurance this year, he said, officials opted to
participate in the insurer’s wellness program, which may ultimately lead to lower
premiums for employees.
The program requires participation in fitness, wellness and health-related educational
campaigns, and a committee is being formed to keep employee morale and participation
levels high.
“Everybody’s getting on the bandwagon,” he said. “I think it’s going to be a lot of fun.”
• The board agreed to donate $500 to the Caldwell-Lyon Partnership this year. The
donation represents a total commitment of $2,000 in the past four years.
• Board member Rook Johns was named to the QHR corporate trustee advisory board.
• The hospital board’s next meeting is scheduled for 6 p.m. Monday, Feb. 27. |
 | © 2008 QHR
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