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Archive for Thursday, April 17, 2003

Lawrence hospital reports strong financial health

April 17, 2003

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Lawrence Memorial Hospital is in good financial health and improving its net income, according to the hospital's latest reports.

The hospital's 2002 audited financial statement was presented to LMH's board of trustees at a regular monthly meeting Wednesday.

The statement showed $2.9 million in operating income (revenues over expenses). As a nonprofit hospital, LMH reinvests its operating income to finance facility improvements, buy new equipment and provide additional services.

The $2.9 million figure reflected a $750,000 increase from the previous year's results.

LMH had a record year in 2002 in terms of patient activity. That resulted in net patient service revenue of $89 million, compared with $82 million for 2001 -- an 8.7 percent increase.

Gene Meyer, LMH president and CEO, said the revenue generated by growth in the volume of services was needed to maintain a positive bottom line.

"Financial strength allows LMH to invest in new equipment, attract and retain outstanding staff and continue our tradition of treating people regardless of their ability to pay," he said.

"This income continues to be reinvested back into the organization and its reserves to better serve our community."

LMH is continuing to invest in technology and facility improvements, and this also was reflected in the 2002 financial statement.

In 2002, the hospital's investments included $1 million toward construction of the expanded Oncology Center to include radiation therapy; $800,000 for completion of a new lab information system; and the installation of state-of-the-art CT scanners at LMH and LMH South.

Other facility improvements in 2002 include the construction of an expanded Cardiac and Pulmonary Rehabilitation Unit at LMH and a Sleep Disorders Center at LMH South.

LMH's Endowment Assn. financed more than $183,000 for hospital needs in 2002, including medical equipment to assist in gathering evidence in rape cases; a surgery table; furnishings for waiting rooms and community meeting rooms; and equipment for patients in oncology, pharmacy and respiratory therapy.

LMH delivered $2.4 million in charity care in 2002, compared with $1.8 million in 2001. The amount of charity care at LMH has tripled in the past five years.

Discounts from gross patient charges for contractual allowances for Medicare, Medicaid, Blue Cross and other third-party payers and charity care totaled $70 million -- 40 percent of gross revenue -- in 2002, compared with almost $54 million in 2001.

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