By Aaron Blevins, Reporter-Times
ablevins@reportert.com
Considering the hard times Americans are experiencing, Morgan Hospital and Medical Center had a good year financially in 2008, according to its third-party auditors.
The hospital's board of trustees received a draft form of its consolidated financial summary for 2008 during the board's monthly meeting Monday.
"We did have a pretty positive year this year," Blue and Co. accountant Ed Abel said.
According to the draft Blue and Co. presented, Morgan Hospital's net assets decreased more than $2 million from 2007 to 2008, which included income from operations of more than $2 million and non-operating expenses of more than $4 million.
"Obviously, the hospital had mutual funds . that got hit like everyone else," Blue and Co. CPA and senior manager Steven Jones said.
The hospital's total operating revenues increased 11.5 percent to $54.6 million while expenses increased 5.4 percent to $52.6 million for the same time period, according to the report.
Income from operations increased $2,950,345 to $2,041,142, which could be attributed to increased net patient service revenue due to a 2008 average rate increase of 9.75 percent and an increase in Medicaid disproportionate share and upper-payment limits payments of $1.5 million through 2008, according to the report.
Blue and Co. also reported that revenues for all inpatient units decreased with the exception of the intensive care unit, the OB/GYN unit and the nursery. Outpatient revenue increased in every department except respiratory therapy, occupational therapy, cardiac rehab and pharmacy, according to the company.
MHMC President and Chief Executive Officer Tom Laux asked Abel if other county hospitals in the doughnut counties that surround Indianapolis had similar financial reports in 2008. Abel said that was the case.
"Virtually all of those hospitals would have had a break-even or a loss year without those Medicaid funds," he said, adding that Medicaid pays MHMC at lower rates.
Board members approved the draft unanimously.