By Tia Lynn Ivey
Morgan Medical Center is ending the fiscal year with a nearly $44,000 operating loss, but anticipate a positive outcome after the hospital received Medicare reimbursements after the official audit.
Officials from Morgan Medical Center appeared before the Morgan County Board of Commissioners (BOC) to present the unaudited financials for Fiscal Year 2019, which ended June 30.
Kyle Wilkinson, chief finance officer for Morgan Medical Center, reviewed the year for the BOC.
“Obviously, our biggest highlight of the year was opening the doors of the new Morgan Medical Center last December,” said Wilkinson.
“We opened two months early. We were on time and under budget. What a wonderful Christmas present for our community,” added Ralph Castillo, CEO of Morgan Medical Center.
According to Wilkinson, the hospital yielded a Net Revenue of $16 million and reported $322,000 in Other Revenues. The hospital incurred $18.6 million in Operating Expenses. According to Wilkinson, Medicare reimbursements should come in between $800,000 to $1 million, which will result in a positive net income for the hospital for Fiscal Year 2019. Wilkinson noted the hospital received $1,171,426 through the Rural Hospital Tax Credit Program.
“It’s been a big boom for us,” said Wilkinson. The hospital also shored up $2.58 million in a proceeds fund account to pay the entire first year of USDA Debt Service payments, which will come to just over $1.8 million. The entire new hospital project cost just over $37 million. The hospital authority raised $3 million for the project and financed $35 million through the USDA for the rest of the costs.
Wilkinson reminded the BOC that every year, the hospital has to account for about $2 million in indigent care, costs from treating uninsured patients.
“That’s a hole we up each year before we can report any net income or net loss,” explained Wilkinson.
Castillo noted that the new hospital is seeing more volume and treating more patients as they have added more medical staff and specialists since opening eight months ago. According to Castillo, the hospital now has 81 physicians on staff and will be adding five more position this years.
The BOC thanked the hospital officials for their work in securing a new hospital for the community.
“You all have always said the first two to three years would be the hardest,” said Commissioner Andy Ainslie.
“But this is a good place to start for the first of the toughest years.”
“I want to thank you on behalf of the community for the work you have done,” added Ainslie.
Hospital officials will return to the BOC in January to present the audited financials for Fiscal Year 2019.