SMH Board of Trustees reviews financial results
The Schoolcraft Memorial Hospital Board of Trustees accepted the hospital’s 2011 audited financials, which were presented at their regular meeting Monday night by the accounting firm Wipfli LLP of Green Bay, Wis.
The annual report reflected a net loss from operations in the amount of $522,375 last year and an unrealized loss from investments of $221,155.
The report also recognized nonoperating income from capital contributions of $812,828, resulting in a profit of $69,297 for the year.
SMH Chief Executive Officer George Montgomery described the figures as “not very good,” but stressed that they were in line with their forecasts for the year.
“In 2011 we budgeted to break even for the year,” Montgomery said.
According to Montgomery, they knew 2011 was going to be a challenge financially.
The hospital had forecast a reduction in revenue due to the loss of their orthopedic program early in the year.
That, along with contractual adjustments and a change in their payer mix, all played a key role in the hospital’s overall revenue stream.
“The biggest change in revenue last year came when Dr. Phillips left,” Montgomery said. “He was here until March, but really did not do any surgeries during his last 90 days at SMH.”
With the loss of orthopedic services and other factors, Montgomery said, they anticipated a reduction of about $800,000 in revenue compared to 2010, which was “a break-even year.”
“We went into 2011 and knew we needed to make some cuts,” Montgomery explained.
He said they developed a plan that called for an overall reduction of expenses, including cutting salaries by $400,000.
“As a result, we ended the year keeping our costs under control as compared to the prior year,” he said. “It is very unusual to have your current year’s expenses come in less than they did the previous year. Despite the effort, we still showed an operating loss for 2011.”
The board also reviewed the financial report for February, which showed the hospital losing $125,000 for the month, giving them a year-to-date loss of $75,000 through the first two months of 2012.
The Woodland Meadows assisted living center reported net income of $283 for February, for a year-todate loss of $670.
“We were ahead of budget in January, and February wasn’t bad, all things considered,” Montgomery said.
The board also approved bad debt write-offs totaling $40,891, $28,904 to be written off to Community Care and $3,083 to Schoolcraft Health Access.
In other business Monday, the hospital board:
• Approved a three-year contract with Capstone Leadership Solutions to provide quality improvement, customer service, and leadership training.
• Approved a contract with Arbor Associates to conduct a patient satisfaction survey.
• Approved a revision to the medical staff bylaws allowing courtesy consulting staff to consult on up to 50 inpatients per year.
• Approved the concept of mandatory employee flu vaccinations in accordance with the federal Centers for Disease Control guidelines, including exemptions.
• Approved a contract renewal with Dr. Gloria VanKlompenberg.