For the month of April 2015, Fairfield Memorial Hospital (FMH) concluded operations with an excess of expenses over revenues of $687,804 due to an adjustment related to a previous month when Medicare EHR revenue received was incorrectly reported as revenue for 2015 versus being reported over the life of the asset. Without the prior period adjustment, FMHs net income for the month of April would be $18,196.00.

For the month, average daily census, admissions, length of stay, patient days and surgical procedures were all slightly under budget. However, total gross patient revenue was slightly over budget for the month due to outpatient and skilled care revenue, respectively. Net patient revenue for the month was $232,500 under budget due to higher than budgeted Medicare and Medicaid contractual, and other revenue deductions. Higher deductions from revenue resulted in a 32% net-to-gross; 4% higher than budget. With monthly gross revenue over $6 million dollars, that equates to a reduction of over $60,000 in net revenue for every percentage point in contractual.

Points of Emphasis

• How did the hospital perform compared to budget?
• If the hospital missed or exceeded its budget for the month of YTD, what were some of the key factors that impacted the month or YTD performance?
• Where are there significant variances that may or may not have been anticipated?
• Are there any key trends that have been occurring or ongoing for the fiscal year?
• Are there any points of major concern?
• Be sure to quantify key variances or trends as appropriate.
• Are there any positive points to acknowledge?