Lawrence Memorial Hospital trustees and administrators said the hospital passed its annual financial checkup with flying colors.

A 2007 audit has shown a $5.6 million increase in revenue from 2006 to $137.2 million.

“Financial strength allows LMH to continue to invest in new equipment, plan for future growth in services and facilities based on community needs, support quality and patient safety initiatives, and continue its tradition of treating people regardless of their ability to pay,” said Joe Flannery, chairman of the LMH board.

The hospital also saw a $6.2 million increase in expenses to $127.6 million. With investment income and other earnings included, LMH netted $14.1 million in revenue over expenses, compared to a $13.8 million net in 2006.

Hospital management attributed the inpatient revenue increase to growth in invasive cardiology services at the hospital and adding vascular surgery.

LMH officials also announced the hospital in 2007 had 211,832 outpatient visits, 6,612 inpatient admissions, 33,673 emergency room visits and 1,149 births. All were up from 2006.

The not-for-profit hospital is self supported instead of using city or county tax funding. LMH is also in the final phase of a $45 million expansion project scheduled to finish in 2009.

LMH President and CEO Gene Meyer said the audit reflected efficiency and financial health during a tough time for some hospitals. He said the hospital has adequate reserves to earn a solid credit rating, which has been vital during the expansion.

“It sends a message that we’re able to reinvest back into the community with substantial dollars,” Meyer said.

The hospital also wrote off about $7.1 million in charity care compared to $6.1 million last year.

Hospital leaders are keeping their eyes on what happens in Congress with federal Medicare reimbursements and will continue to try to recruit quality physicians and other medical staff, Meyer and Flannery said.

Flannery said the trustees were not concerned about $630,541 less in operating income – before adding investment income – from last year because 2006 was such a landmark year. The finances from 2006 included some favorable Medicare settlements, Meyer said.

“It’s just a sign of all the expenses. We continue to grow, and I think that shows in the audit,” Flannery said.

BKD LLP of Kansas City, Mo., presented the audit results to trustees Wednesday at LMH, 325 Maine.