Lawrence Memorial Hospital leaders expect to end 2010 in the black with an operating profit of $7 million.
LMH expects rise in charity care to affect its bottomline in 2010
Lawrence Memorial Hospital leaders expect to end 2010 in the black with an operating profit of $7 million. But, that’s down 26 percent compared to the $9.5 million projected for this year, and 13 percent from 2008’s profit of $8.1 million. Enlarge video
But, that’s down 26 percent compared to the $9.5 million projected for this year, and 13 percent from 2008’s profit of $8.1 million.
“Overall, it’s a solid budget,” said Chuck Heath, finance committee chairman.
The Board of Trustees approved the 2010 budget on Wednesday morning during its monthly meeting.
Hospital leaders anticipate operating revenues of $172 million, a 7 percent increase over this year’s projected numbers. But, they also expect expenses of $165 million, a 9 percent increase.
“The budget reflects the reality of the current economic situation on hospital operations and the uncertainty of its future impact,” CEO and President Gene Meyer said. “While we are forecasting increases in inpatient days and outpatient activity, significant increases in bad debt and charity care will challenge the hospital’s bottomline.”
The hospital is committing nearly $9 million in projected write-offs for patients who apply for and meet requirements for financial assistance. This is an increase of 12 percent over 2009. That includes $2 million for people who are referred from Health Care Access, a medical clinic that serves uninsured Douglas County resident.
Salaries and wages are expected to cost $59.7 million in 2010, which is 10 percent higher than what’s budgeted this year.
“We have to maintain a salary level that will help us keep the excellent staff that we have,” Simon Scholtz, chief financial officer, said.
The hospital is raising its rates 5 percent to help offset inflation, the same as last year.
Operating income is reinvested back into the hospital through funding of capital expenditures and reserves.
In 2010, LMH plans to spend nearly $10 million on capital improvements. About half of the money will be spent on the old surgery area in the heart of the hospital. The laboratory will be expanded to take up part of the area. Plans also call for the Pain Management Clinic and Endoscopic Center to be relocated from LMH South to the area.
“We’ve been managing our expenses very closely,” Scholtz said. “It’s important to us that this hospital thrive for many years to come.”
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notajayhawk (anonymous) says…
So 'not-for-profit' LMH will post *only* a 4% profit for the year - and that's okay. But the 3.4% profit for the average healthcare insurance plan is an abomination. Riiiiight.
Shelbyrules (anonymous) says…
I am not completely clear on your comment. Yes, LMH is not for profit and all of the money from this/last year will go back into the community hospital. Is this a bad thing?
emptymind (anonymous) says…
They are only going to make 7 million this year? Gee.....must be hard for them to pay all those salaries. I wonder if there will be layoffs/firings? The public wouldn't hear about them
overthemoon (anonymous) says…
gees, it sure would have been interesting if the writer of this article asked whether the hospital adm felt that universal health coverage would be a good thing in light of all of these 'charity' cases. You can bet that those who are insured are paying for a good part of the uninsured bills through higher cost of care and insurance premiums. The hospitals and doctors aren't going to just eat the loss on their own.
overthemoon (anonymous) says…
Marion. I'm sure making up funny names for the democratically elected President of the United States seems like a cute thing to do. Are you concerned with the President showing respect to his international counterparts? Would you rather have him insult and humiliate foreign leaders with dumb jokes and inappropriate cowboy rib poking like the previous President? Are you aware that for the past several decades every business primer on international communications makes it clear that its a good thing to show understanding and respect for another culture's traditions? Have you heard that the standing of the United States in the world community has risen dramatically since President Obama has taken office?
And most importantly, maybe you haven't noticed that the world is engaged in multiple crises. Why is the Presidents' greeting getting more air time than substantive news?
kbritt (Karrey Britt) says…
overthemoon. Here is what the CEO Gene Meyer had to say about health care reform in August: http://tinyurl.com/ylkwq35
overthemoon (anonymous) says…
Thank you, Karrey.
That article is from early august and reflects discussion on a very different time in the health care debate.
It is very very important for the public to be well informed on this issue. Our local legislators are failing to provide this information, feeling it important to only exacerbate the fear mongering and incorrect interpretations for their own political purposes. There are more than two sides to the story, and we need to have the factual support for all sides of the argument presented in a dispassionate manner. The failure of the media to do the hard work to present real information is allowing single interests and political dramatics to commandeer the debate of this very important issue.
I would like to think that a newspaper in a well educated college community would take the lead in providing ALL of the facts without bias. Sadly, the wait for journalism with integrity appears to be long.
ilovelucy (anonymous) says…
Over: you're wasting your breath with Marion. Just an FYI.
overthemoon (anonymous) says…
lucy...I know.
laughingatallofu (anonymous) says…
Emptymind's comments demonstrate that he's true to his namesake.
Marion's just immature. Always has been.
kylechandler (anonymous) says…
its becoming really clear who is a FOX news watcher and who actually gets their news from FAIR endorsed sources.