Not-for-profit Inova Health System, Falls Church, Va., recorded lofty gains in its operating and total surplus in the first half of fiscal 2014 as its expenditures dropped year-over-year, the system reported.
Operating expenses at the five-hospital system decreased 0.1% in the six months ended June 30, a rare occurrence in the sector. Many not-for-profits have reported stable overall finances recently, but most have faced rising operating costs.
Inova said it saved money by outsourcing its dietary services and reducing the number of staff working on its Epic Systems Corp. electronic health-record system. Inova completed its Epic EHR and revenue-cycle implementation last year.
The system also recorded higher outpatient surgical volumes, which helped boost net patient-service revenue. Outpatient surgeries rose 13.3%, totaling almost 23,000 in the first six months of the year.
Overall, Inova's operating income climbed 75% to $111.2 million. Total revenue increased 3.7% to $1.31 billion. Inova's operating margin in the first half of fiscal 2014 sat at 8.5%, a sharp improvement from the 5% mark in last year's comparable period. Total surplus, which includes gains from investments, almost doubled in the first six months of the fiscal year to $245 million. —Bob HermanFollow Bob Herman on Twitter: @MHbherman
Natchez (Miss.) Regional Medical Center has announced a 10% salary reduction for all employees and managers while some upper-and middle management-level workers will see a cut of 20%.
The hospital says it is trying to shore up its finances to remain in business until it is turned over to new ownership.
Community Health Systems, based in Brentwood, Tenn., is expected to finalize the purchase of the hospital by Sept. 30.
Natchez Regional CEO Donny Rentfro says employees making less than $9 an hour will not be affected and no employee will drop below $9 an hour in the reduction.
The medical center opened in 1960 as Jefferson Davis Memorial Hospital. —Associated Press