NEWS - Health & Hospitals

By Lou Phelps

Jan 30, 2012 - Memorial University Medical Center released its year-end 2011 financial results last Wednesday afternoon at the board of directors’ January meeting reporting a $ 1.3 million profit, a significant improvement after a loss of more than $16 million in 2010.

The turnaround was achieved through a number of management initiatives under the hospital’s new CEO, Maggie Gill, named president of the hospital in February.

Also contributing to the improved financial picture was the loss of the ambulance system contract with Chatham County. The Southside Fire Dept. underbid Memorial Hospital to provide ambulance services in two of the County’s four zones The contract was losing the hospital more than $1 million a year, though potentially brining more patients to Memorial.

Other financial changes in 2011 versus 2010, include a reduction in revenues when two of the hospital’s physician practices did not re-sign their contracts with the hospital system - Eisenhower Medical Associates, led by Dr. Paul Bradley, and Dr. Keith Cobb, a primary care practice in Richmond Hill who is now part of South Coast Medical group.

Memorial had been budgeted to lose ($19.9 million) in 2011, under the budget developed by the hospital’s previous CEO Philip Schaengold, fired by the board in January 2011.

According to Gill, another significant improvement was the hospital’s quality control program, begun in 2010. The high scores of the hospital on patient outcomes helped to cut its liability insurance costs by more than $7 million in 2011.

A review of the hospital’s profit and loss statement shows that the hospital had budgeted to pay $ 38.9 million in fees, but had to spend $ 51.9 million. But that figure is deceiving because they cut payroll by almost million. Instead of hiring staff to process payments and pursue payments, Memorial has now outsourced that work to a contracted firm, saving millions.

And, according to Gill, the hospital is now collecting a higher percentage of its Accounts Payables and more quickly, reducing writeoffs.

Memorial Health, Inc.’s consolidate balance sheet as of Dec. 31, 2011 shows that the hospital’s net property and equipment valuation dropped from $197 million to $181 million. The reason is that both property and equipment of the hospital is aging, and is being devalued, in keeping with accounting principles, and Memorial has not had the cash in recent years to buy needed equipment or make capital improvements.

In other news, the board welcomed the hospital’s new CFO, Stephen Jan Grigsby, named Senior Vice President/CFO, coming up from the Jupiter Hospital independent system in the Palm Beach, FL area. Maggie Gill was previously the CFO.

Employees at the hospital have been told that there is “a rumor of a raise,” according to the hospital’s Pastor Doug Westfall, but there is no public record of discussion of a raise. Employees at the hospital have not had a raise in four years.

Westfall also told the board that “the hospital is very stressful right now, It’s a full house.” Memorial has been handling a patient load, particularly through its emergency room, far in excessive of the facilities it was designed to handle.

Memorial has recently invested in iPads for all residents, which is improving patients’ experiences and improving their work flow, according to the head of the hospital’s physicians.