Hospital reports financial gain for june:
EMH reduces amount of funding requested from the County
By Sarah Gove
Evans Memorial Hospital board and authority held their monthly meeting on Wednesday, July 22, reviewing financials for June and approving Dr. Curt Hames, Jr. as the new hospital authority appointment.
Net revenue for June was $29,000. The monthly statement reflects income received via Evans County's funding of $175,000 for the first quarter. "That's recognition of the county funding that happened in April," said Steve King, ER Hospital partner, management company for Evans Memorial.
While revenue was positive for the month, operationally EMH reported negative EBITDA (earnings before interest, taxes, depreciation and amortization) of $55,000 on the month. "We had negative earnings from operations of $55,000. That's primarily due to lower volumes ... our revenue is off $500,000 month over month, May versus June," King reported.
Expenses were up for the month due in part to an increase in health insurance claims that had to be paid out in June. In May, $29,000 in claims was paid, but last month the figure totaled $77,000. "... about a $50,000 spread between the months which is all in that salary and benefit line," King explained.
In addition, the hospital recognized some out of period expenses in June. Approximately $22,000 in lease expenses had to be paid. Total out of period expenses were $33,000 in June.
In spite of the additional expenses on the month, the hospital is still fairing better than this time last year - even when the $175,000 quarterly funding from the county is backed out of the report. "We actually ended up $60,000 ahead of last year on an EBITDA basis on the month," King reported.
Year-to-date, Evans Memorial is $1 million ahead of last year. "Year-to-date EBITDA is actually $840,000 ahead of the prior period," King said. "The story really is on the expense side. We're $1 million better than last year on expenses."
Per ER Hospital’s arrangement with Evans County, the county funds $175,000 per quarter. Approximately $125,000 ($122,000 to be exact) of the funding is appropriated for debt service payments while the other $50,000 is set aside for hospital operations.
"In the first quarter, we requested the full $175,000. We just got done requesting and receiving the second quarter of those funds and we actually only requested the debt service component of that," King said.
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