By Tia Lynn Ivey
For the sixth consecutive year, Morgan Medical Center has turned a profit, raking in $245,000 for the last fiscal year, according to Kyle Wilkinson, the hospital’s Chief Finance Officer.
On Tuesday, Jan. 5, Morgan Medical Hospital leaders appeared before the Morgan County Board of Commissioners to deliver an annual update of the hospital’s finances and business operations.
“For FY 2020 we reported a Net Income of $245,000. This makes six consecutive years that Morgan Medical has reported a positive year financially,” said Wilkinson Tuesday morning.
Wilkinson noted that despite a difficult year due to the ongoing coronavirus, that the hospital was still able to turn a profit. In Fiscal Year 2017, the hospital reported almost $2.8 million profit, but that was in the midst of a capital campaign to raise money to build the new $35 million replacement hospital that is open today. In Fiscal Year 2019, the hospital reported $344,000 in net income.
Wilkinson noted that despite decreasing the amount of patients in the hospital during the beginning of the pandemic, over all volume of patients has continued to increase from years prior. The number of patients and surgical procedures are all trending upwards.
“We are up across the board,” said Wilkinson.
Wilkinson reported that Morgan Medical Center now owns $50 million worth of assets.
“In 2017, our assets were just over $8 million dollars,” said Wilkinson. “Our assets are growing, our cash is growing, we are a growing facility.”
Wilkinson also noted the hospital has $10.8 million in operating funds said aside, including almost $4 million dollars in funding from the CARES Act, which the hospital will have to spend before the summer on COVID-19 related expenses.
“It’s a good position to be in, to have the money and look for ways to spend it,” said Wilkinson.
Morgan Medical Center CEO Ralph Castillo addressed the BOC, thanking them for the $1 million in funding the county provides to the hospital each year. According to hospital officials, that money helps offset indigent care—the cost uninsured patients who must be treated by law but then cannot afford to pay the bill.
In 2019, indigent care expenses went by 10 percent for the hospital, topping over $2.5 million.
“We thank you for helping us meet the needs of the uninsured with the money we get from the county,” said Castillo. “It matters that we are here for the people of Morgan County and it matters that we do a good job.”