Expected profit was $1.9 million
ELIZABETHTOWN, Ky. (Jan. 19, 2016) — December, revenue at Hardin Memorial Health exceeded expenses by approximately $3.1 million—compared to a budgeted profit of approximately $1.9 million—officials reported Tuesday during a regular meeting of the HMH Board of Trustees. December profit was about $682,000 more than in December 2014.
In November, revenues exceeded expenses by approximately $1.04 million, compared to a budgeted loss of $100,000 and equal to November 2014 profit.
“Our strategy to expand our services, improve facilities and bring more physicians into the healthcare system has enabled us to treat more patients right here in our region,” said HMH president and CEO Dennis Johnson. “That has a financial benefit, of course, but what’s more important is we are improving care for our patients and their families.”
Outpatient services continue to grow, including the emergency department, lab, radiology and surgery, said VP and chief financial officer Lennis Thompson. Additionally, a higher number of patients with serious health problems also are seeking inpatient services at the hospital.
While HMH’s profit margin continues to trend positively, Thompson reminded the board that many factors can impact that trend.
“It’s important that we build cash on hand not only to improve HMH’s bond rating but also to prepare for a downward trend, which is inevitable given the nature of the industry,” Thompson said.
The healthcare system has cash on hand to operate for 121 days, and has earned a Standard and Poor’s rating of BBB. HMH requires approximately $700,000 daily for operating expenses. Upgrading to the next rating, BBB+, requires approximately 208 days worth of operating cash.
“We’re pleased with our recent financial performance because it positions us to continue to improve the care we provide the 400,000 individuals in our service area,” Johnson said.