Lawrence Memorial Hospital, 325 Maine St.

Auditors issued a clean opinion of Lawrence Memorial Hospital’s financial records for 2015 and noted an increase in revenues, despite continued challenges with third-party reimbursements.

A report issued to the hospital’s board of trustees Wednesday showed a $17 million increase in revenue from 2014 to $203 million before expenses, an all-time high. There were also increases in cash and operating income.

The audit noted about $2.1 million was due from third-party payers in 2015, down slightly from $2.6 in 2014.

Earlier this year, LMH officials spoke to the KanCare Oversight Committee, detailing examples of cases in which private companies managing Kansas’ Medicaid system have wrongly denied claims or tied up payments in appeals processes.

“It’s imperative that LMH remain strong financially to continue to serve our community well into the future,” said LMH president and CEO Gene Meyer in a written statement about the audit. “We are very concerned about the state not adopting Medicaid expansion and the ongoing decreases in reimbursement from payers. We must continue to improve our performance to address these challenges.”

The audit also showed:

• The hospital ended 2015 with $18.2 million in net operating income, a $6 million increase from 2014.

• There were 1,210 births at LMH in 2015, up from 1,119 in 2014.

• Emergency visits totaled 38,969 last year, up from 37,222 in 2014.

• LMH is paying 7.3 percent more in employee salaries, wages and benefits in 2015 than in 2014.

• Major costs in 2015 were $1.8 million for new MRI equipment and $1.2 to finish a fourth floor renovation.

In other business:

• The board of trustees will make its nomination next week — after a months-long national search — for who should take over as LMH president and CEO.

Three final candidates visited Lawrence this month, met with city leaders, and sat for interviews with a committee formed to hire the next CEO.

Cindy Yulich, chair of the board of trustees, said the committee is gathering feedback from everyone who met with the candidates. On Monday, the board of trustees will hold a closed special meeting to make its decision.

At that point, negotiations will begin with whomever the board selects.

The names of the final three candidates won’t be released. An announcement about the new CEO will be made once negotiations are finalized, which could be as early as late next week.

The new CEO will replace Meyer, who is retiring May 31 after nearly 19 years in the role.

• Kathy Clausing-Willis, with the hospital’s endowment association, notified the board that this month’s Hearts of Gold ball netted $459,000. The money will go toward the Cardiovascular Specialists of Lawrence’s Heart Catheterization Lab. Another $200,000 in major gifts has also been set aside for the lab.

• LMH Volunteer Services presented its annual report, which stated 896 volunteers put in 73,949 hours in 2015. The average age of volunteers is 36, and 71 percent of them are women.