MMH budget to increase by $689,000

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By Tia Lynn Ivey

managing editor

The Morgan Memorial Hospital Authority (MMHA) is confident that the hospital will finish the 2017 fiscal year in the black and approved the 2018 budget, with a total of $14.5 million set in Operating Expenses, which is an increase of $689,000 from the FY 2016 audit.

“We compare the budgeted numbers to the most recent audit, rather than the previous year’s budget, to get a true reflection of the changes.  That is why you will see FY 2018 budget and FY 2016 Audited numbers.  It is important to note the changes are over a two-year period.  Our FY 2017 audit will take place sometime this fall,” said Kyle Wilkinson, chief financial officer for MMH.

“For FY 2018, we budgeted Gross Revenue of $24.7 million, which is $1.2 million more than they FY 2016 audit…The increase is largely due to our opening of Morgan Physician Services and the re-opening of the MRI service line,” explained Wilkinson.  “Typically, we write off just under half of our Gross Revenue so our Deduction for Revenue was budgeted at just under $11 million, or 44.5 percent of Gross Patient Revenue.  This leaves our budgeted Net Revenue at $13.7 million, an increase of $336,000 from the FY 2016 audit.

MMHA leaders are confident in the new budget as well as their standing at the end of the 2017 fiscal year.

“There’s no doubt in my mind that this hospital will enjoy a black fiscal year in fiscal 2017,” said Ralph Castillo, CEO of Morgan Memorial Hospital (MMH).

Chief Finance Officer Wilkinson informed the MMHA at the last regular meeting on June 29, that as of May, the 11th month of the 2017 fiscal year, MMH finished in the black.

“We made $103,000 for the month of May and are just under $800,000 in the black for the year,” said Wilkinson. “The board approved the FY 2018 budget and we anticipate a positive audit confirming three years in a row in the black.”

“This has not happened in Morgan County at this hospital since President Ronald Reagan,” said Castillo. “I’d like to put a strong dot on the idea that the continuity of leadership matters. We are trying to direct an organization, and we are trying to make some substantial changes, especially in light of where we have been prior to fiscal year 2012. It matters that this ward be in tact. It matters that we have strong leadership from this [Chairman Terry Evans] and this body because what we are here for is to take care of people… and in order to do that the best way we can, we have to have visionary leadership, we have to have extreme followership, and we have to put together a financial package that keeps this hospital moving forward, growing, and investing where we need to be.”

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