Hospital Closes 2016 with Operating Profit, Trend Continues in First Quarter
Carthage Area Hospital’s audited financial statements for calendar year 2016 report an operating profit of $432,188, the first time since 2009 that the organization has posted positive year-end operating performance.
The Board of Directors approved the calendar year 2016 audit during its monthly meeting in May. The hospital ended calendar year 2015 with an operating deficit of approximately $1.9 million. Hospital leadership attributes the financial improvement to continued stabilization since restructuring operations as well as increased utilization, especially in specialty care.
Operating income continues to show a positive trend in 2017. Quarterly operating profits at Carthage Area Hospital were $123,482 in the first quarter of 2017 compared to $839 for the same period last year. It is the first time since 2009 that the hospital posted an operating profit in successive months of a single quarter.
“While we are pleased with our continued positive financial results as we move into 2017, we are mindful of the work that must continue to cement a long-term sustainable future,” Carthage Area Hospital CEO Rich Duvall said.
Duvall added that evaluating service lines and hospital programs for efficiencies and financial wellness is an ongoing process that will ensure the organization’s continued fiscal health.
“Team members at all levels are encouraged to innovate in ways that transcend organizational health,” he said. “We can no longer assume that profitable service lines will cover our losses in areas that aren’t profitable. Our recent positive financial performance, while exceptional given how far we’ve come, does not insulate us from difficult decisions in the future.”
Duvall noted that the hospital’s capacity to serve the region is positive as it continues to invest profits from operations back into the organization to improve equipment and services.
“Our providers and patient services remain strong,” he said. “We are ready and open to accommodate and respond to a wide range of patient care that our communities demand.”
About Carthage Area Hospital
Carthage Area Hospital was established as a not-for-profit rural community hospital in 1965. It operates today as a fully accredited 25-bed Critical Access Hospital, serving approximately 83,000 residents in Jefferson, northern Lewis and southern St. Lawrence counties.
The hospital also operates a network of community-based clinics, including its Family Health Center, Pediatric Clinic and Women’s Way to Wellness and provides a range of specialty care, including general surgery, orthopedics, urology, physical therapy and behavioral health.