Hospital Ends FY04 in the Black

The Martha's Vineyard Times
May 27, 2004

Author: Nelson Sigelman

The Martha’s Vineyard Hospital is in healthy financial shape. The details are contained in consolidated financial statements that will be presented to the hospital board when it meets Saturday.

The independent auditor’s report by Feeley and Driscoll of Boston, dated May 14, covers the period from March 31, 2003 to March 31, 2004, and includes the Windemere Nursing and Rehabilitation

Center, which follows the calendar year.

The hospital and Windemere ended their consolidated fiscal year with a net gain in operations of $286,859. Gifts and other income raised the bottom line to $2,377,615.

Tim Walsh, hospital chief executive officer, said that as far as he knows it is the first time the hospital has ended the year with a profit on a consolidated basis.

“It has been a pretty good year,” said Mr. Walsh. “We managed to get Windemere down to a loss of $198,492, which is manageable, and increased hospital volume across the board.”

Mr. Walsh said the hospital’s revamped rehabilitation program, which provides services for patients requiring physical and occupational therapy, has been a big factor. Patients in need of rehabilitative services for extended periods — for example in the case of a patient recovering from a hip operation performed off-Island — now have the choice of being on-Island closer to family and friends to receive therapy. “That has helped us quite a bit,” he said.

In addition, emergency room volume and the need for X-ray and laboratory services tied to more in-patient care have also generated increased revenue.

Over the past several months hospital officials have been retooling plans for a new facility in an effort to lower the cost estimate, close to $50 million. The board is expected to discuss that effort, and current design plans.

The hospital’s strong financial shape provides a firm foundation for the effort to build a new facility, said Mr. Walsh.

According to the consolidated report:

… Total patient service revenue was $33,733,794.

… Gross revenue from outpatient services increased from $35,837,718 in 2003 to $40,719,721 in 2004.

… Total salaries and wages were $16,681,808.

… Income from operations was $286,859, based on a hospital gain of $485,351 and a

Windemere loss of $198,492.
… Gifts and bequests totaled $1,026,674.
… Free care cost the hospital $1,608,000.
… The number of patients provided free care represented 3. 14 percent of all patients served.

To contact Feeley & Driscoll, please click here or call us at 1 (800) 392-6192.