Reported losses recover
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DAYTON-Losses reported of $416k for Columbia County Health System in November were recovered in December with a net income of $887k according to the January 25 report during the monthly meeting. An end of the year financial analysis was provided by CEO Shane McGuire who also gave updates on progress towards obtaining the licensing to open Rivers Walk Assisted Living, as well as next steps for the Childcare Project. He also spoke about several facilities maintenance issues that occurred in December that were resolved.
The November financials reported the highest monthly net loss for 2022 of $416k. This was due mainly two factors–the delay in opening the assisted living facility and to the transition of contracting with a new coding company that was delayed in coding for billing for the rehab department. Those revenues have since been reflected in the December report which contributed to a $887 net income. Another contributing factor was the high collections of $5.8 million for billed services which was up by $1 million over the previous month. As a result, the days cash on hand increased by three days to 27 days.
McGuire provided some perspective to the Hospital District Board about the 2022 financials. "Looking back, we created a good budget for 2022 with revenues, expenses, and assumptions coming in very close to budget. This is close to breakeven operationally at -.92% of New Patient Revenue." He said it was extraordinary considering $972k in expenses for the assisted living with no offsetting income, increased labor and supply costs, and issues with the supply chain. He reemphasized the financial pressure on healthcare. "Washington State hospitals lost $2.57 billion in 2022 with Net Income reported at -11% for the first nine months of the year."
The pending licensing inspection for the assisted living facility from Residential Care Services was scheduled for the end of January, according to McGuire. The phone and IT systems will also be completed along with finishing final items for a survey check before the facility can open.
CCHS advertised the Childcare Project would be on the agenda for the January 25 meeting as a part of a requirement for applying for State and Federal grant funding. A few comments were heard in support of the project in providing the needed service to the community. McGuire said they are in contract negotiations with the proposed operator of the facility. The operator will then work on obtaining licensing. Plans have been made for demolition and construction of Hall 2 with plans to be permitted to begin by March 1, and be completed and open by Labor Day.
Several facilities issues occurred in December including significant roof leaks into one of the rooms, a broken fire sprinkler head due to the colder weather which required a fire watch, and boiler failures because of faulty exhaust sensors which resulted in a frozen pipe. All issues have been addressed and resolved.
