Samaritan turns profit in August

MOSES LAKE — Samaritan Healthcare beat its budget projections for August, which pushed it further into the black for the year to date. Commissioners reviewed the financial report at their regular meeting Tuesday.

The hospital generated $674,920 in net income in August, about $8,000 over projected net income in the 2018 budget. Samaritan has generated $3,499,811 in net income for 2018 to date, about $950,000 over the budget target.

Chief financial officer Alex Town said the positive revenue report was driven by inpatient admissions for surgery services. “In comparison to budget, general surgery is up 22 percent in total, inpatient and outpatient services. (Obstetrics) is up 37 percent in comparison to budget.” Podiatry surgeries were up 15 percent and ear, nose and throat surgeries were up 19 percent, when compared to budget targets. “It’s definitely the trend that our surgical services continue to grow.” The orthopedic department was under the budget target, but at about the same level as last year, Town said.

Along with outpatient surgeries, the outpatient departments experienced increases in emergency room visits and people using the hospital’s laboratory. Outpatient revenue was 7.6 percent over the budget target, and about 1.5 percent over budget target for the year, Town said.

Samaritan Clinic revenue also exceeded budget expectations, about 14.4 percent over the budget target.

But more business also means more expenses, and they were up also. The hospital had to pay salaries and benefits for temporary nurses and doctors, for additional supplies and a lease on the hospital’s MRI machine. A new MRI machine has been purchased, but the original location chosen to house it was rejected by state officials. An alternative site was selected, but interim chief operating officer Robert White said hospital officials have been told inspections will take at least two to three more months.

The hospital’s bad debt and charity care expenses also increased. “We had a number of accounts, large accounts, that we ended up sending to collection,” Town said. The hospital has $3,420,279 in bad debt and charity care expenses through the first eight months, he said. “We are on track to provide $7.2 million of uncompensated care for 2018,” he wrote.

Cheryl Schweizer can be reached via email at education@columbiabasinherald.com.