Rice Hospital in Willmar, Minn., enjoyed strong financial performance in 2011
WILLMAR — The numbers aren’t official yet, but Rice Memorial Hospital turned in its best financial performance last year in at least five years.By: Anne Polta, West Central Tribune
WILLMAR — The numbers aren’t official yet, but Rice Memorial Hospital turned in its best financial performance last year in at least five years.
According to unaudited figures shared Friday with the hospital board’s finance committee, Rice earned a margin of nearly 6 percent on total operating revenue in 2011 of $102.6 million.
This translates into $6 million in profit that can be plow-ed back into services and new initiatives the hospital is planning in upcoming months.
It also will help buffer Rice as the hospital prepares for the fiscal impact of state and federal health care reform.
“Having the kind of cash reserves we do will be critical,” said Bill Fenske, chief financial officer. “The only thing we know is change will be coming.”
He called it “a very successful year.”
The annual audit will start in mid-February. A final report will be presented to the board of directors in April.
Hospital officials said Friday that several factors combined to produce 2011’s strong fiscal performance.
Patient volume rebounded last year after a long, steady decline. Inpatient admissions topped 13,000 — an increase of nearly 5 percent over the year before, and almost 19 percent higher than the hospital had projected.
Among outpatient services, volumes also were up in most departments, from medical oncology to dialysis to the emergency room and ambulance runs.
Meanwhile, operating expenses stayed mostly flat.
“That’s a positive spread that works every time,” Fenske said.
Rice also added nearly $6 million in net assets this past year, mainly in cash and investments. By the end of 2011, the balance sheet stood at $57.2 million in assets.
“It strengthened our financial position going forward,” Fenske said.
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