Clarinda, IA | (September 27, 2017): Clarinda Regional Health Center (CRHC) has completed an annual audit of its financial statements for the fiscal year ending June 30, 2017. Omaha-based accounting firm Seim Johnson completed the audit and presented the results at a special meeting of the Hospital Board in September. Although the hospital posted a loss, or decrease in net position, of $226,611 for the period from July 1, 2016 to June 30, 2017, there are issues affecting financial performance that are not influenced by the Board and management.
In particular, as a municipal or city hospital, CRHC employees participate in the Iowa Public Employee Retirement System which is currently underfunded. The hospital took an unexpected charge of $332,060 from IPERS to continue to meet necessary state funding requirements. “The IPERS obligation erased what should have been a positive bottom line from operations, said Joni Christensen, CRHC Director of Finance. Additionally, monthly, non-cash depreciation expense of over $200k on facilities and equipment make it difficult for CRHC to show a positive bottom line.
On a positive note, auditors reported that the hospital’s cash position improved dramatically to 204 days cash on hand. Earnings before depreciation expense and amortization, or EBDA, was positive at $2,353,601.
Hospital volumes were stable or up from the previous fiscal year for most CRHC departments. “We continue to grow or sustain patient volumes and meet demand in both our Clarinda and Villisca physician clinics. We care for hundreds of Southwest Iowans on a daily basis and we are proud to be here for them” said Chris Stipe, CRHC Chief Executive Officer.
Growth continues to be an essential part of the hospital’s success. Nearly every month the hospital sees over 100 new patients accessing its various services. Stipe says, “This is particularly encouraging since, according to statistics, our local population is stable at best. This means we are likely gaining market share from competitors.”
The hospital continues to see benefit from the implementation of the 340B pharmaceutical program. “We partner with local pharmacies to administer the program. It benefits the pharmacies, the hospital, and ultimately the patients,” said Sherrie Laubenthal, Chief Nursing Officer.
During the presentation, Seim Johnson pointed out that CRHC, unlike many of the public hospitals in Iowa, does not receive public funding from local taxes. Brian Green, CPA and Partner at Seim Johnson, shared a list of Iowa’s Hospital Tax Rates and Tax Revenue. The list included Ringgold County Hospital with annual tax revenue of $1.28M, Montgomery County Hospital $1.81M and Cass County Hospital at $2.31M.
CRHC has started its new fiscal year strong, posting positive bottom lines in both July and August. The hospital has budgeted a small gain for the current fiscal year that will end June 30, 2018.
As for the future, the hospital is already moving ahead with its strategic plan. The Board passed the plan September 25th. “We are forecasting growth in clinic visits, surgeries, orthopedics, imaging and a number of other key areas. We are also working more closely with local businesses and the school district to provide the care they need for local workers and students to reach their potential.” Stipe commented.