WILLMAR -- Rice Memorial Hospital made a financial turnaround last year, posting a $1.8 million return after two money-losing years in a row.
The preliminary figures for 2007 were shared Friday with the finance committee of the city-owned hospital's board of directors.
The annual audit doesn't start until mid-February, and a final report won't be presented to the board until April.
Nevertheless, it was "great news" to see the extent to which the hospital's finances have recovered, said Bill Fenske, chief financial officer.
"It's a great report that we can bring forward of what we've accomplished," he said. "It's a lot better news than a year ago, and we're very pleased and very proud of what our directors and leaders have accomplished."
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Although the audit might result in some adjustments to the numbers, none are likely to negatively affect the overall bottom line, Fenske said.
The hospital itself sustained an operating loss of just under $120,000 last year. But it received a $2.1 million boost in non-operating income -- primarily from its joint ownership in the Willmar Surgery Center -- that moved it into the black.
It's a big change from one year ago, when the hospital was facing a $2 million loss and was forced to cut its budget and lay off 17 employees.
Hospital officials have attributed most of the loss to declining patient volume, which brought in less revenue.
Patient revenue continued to lag more than 6 percent below projections in 2007, but cutbacks in spending helped offset this and ultimately contributed to keeping Rice out of the red last year, Fenske said.
"We were able to deliver on those," he said.
During 2007 the hospital also was able to increase its net assets from $45 million to $47.3 million.
Productivity, a measure of staff numbers against patient volume, revenue and expenses, also showed improvement during 2007, Fenske said.
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The hospital's goal is to improve its productivity ratio by 3 to 4 percent a year until it reaches the industry benchmark, he said.
"That means we have to keep doing a little bit more with a little bit less, or a lot more with the same. It's the same as any industry," he said.
