By Patrick Yost
Morgan Memorial Hospital Monday heard a positive end–of–the–year audit showing for two years in a row the hospital has booked positive revenues.
According to Jimmie D. Richter, Jr. CPA, Draffin & Tucker, the hospital posted nearly a $600,000 profit for 2016. The news caused a small roar at Monday’s Morgan County Hospital Auxiliary meeting.
In 2015, according to Draffin & Tucker’s audit, the hospital booked a $500,000 profit. In 2014 the hospital showed a $38,000 loss.
Morgan Memorial CFO Kyle Wilkerson told members of the authority that reaching positive revenues is difficult given the approximately $2 million loss the hospital books each year from indigent, non–paid health care the facility provides annually.
“Every year we face this,” Wilkerson said regarding the $2 million provision of local health care. “To turn that into a positive… you can’t brag enough,” he said.
According to the audit, in 2016 the hospital had $1,348,000 in net revenues compared to $13,855,000 in total expenses for a net $371,000 loss. However, after factoring in the $1,010,000 contribution to the hospital from the county, the facility showed the profit. In 2015 the hospital had $13,663,000 in net revenues with $13,772,000 in total expenses for a $109,000 loss but after factoring in a $600,000 contribution from the county; the facility showed a $500,000 profit in 2015.
On a comparative basis, Richter compared Morgan Memorial Hospital with four other critical access hospitals in Georgia. As far as operating loss, Morgan Memorial faired better than all four facilities. Morgan Memorial’s operating loss, at $371,000 was far less than the next critical hospital that showed a $914,000 loss. One critical access hospital showed a loss of $2,772,000 with a negative 27.7 percent operating margin. Morgan Memorial Hospital has a negative 2.75 percent operating margin.
Morgan Memorial CEO Ralph Castillo said the audit was “a testament to everything we’ve done over the past three years.”
“There should be no reason that we can’t continue to do good work.”
Castillo said the audit results “expresses efficiency and effectiveness of the business acumen we practice at this hospital every day.”
Castillo also said the results should provide optimism for building a new facility.
“There’s no reason, no reason,” he said at the meeting “that we shouldn’t not be allowed to do that.”