Hospital closes year on positive note

From News ReleaseNovember 23, 2013 

Johnston Health finished fiscal 2012-13 with operating income of $2.8 million.

It’s the first positive margin in five years and comes at a time when many other health care systems are reporting losses.

“Johnston Health has hardwired fiscal discipline throughout the system,” said Eddie Klein, chief financial officer of Johnston Health . He said the positive finish to 2013 was even more remarkable considering that the hospital saw a decline in admissions, reflecting of an industry trend.

Here are the highlights of the fiscal year ending Sept. 30:

•  A strong performance at Johnston Medical Center in Clayton: Operating income grew by 77 percent, from $4 million to $7 million. Year-over-year net revenue grew 16.5 percent.

•  Labor management at Johnston Medical Center in Smithfield: Salaries and contract labor were $1 million less than the volume-adjusted budget.

•  Robust outpatient procedures: Ophthalmology and ob-gyn surgeons drove a 13 percent increase in outpatient surgeries. Endoscopy cases grew by 5 percent, largely because of the hospital’s two newly recruited gastroenterologists. Also notable, cases in the hospital’s cardiac catheterization lab grew by 23 percent.

•  Case management’s role: Because of the department’s emphasis on utilization management and proactive discharge planning, the average Medicare length of stay fell 10 percent from the prior year, in spite of a slight increase in acuity.

•  More efficient operations: The health care system reduced operating expenses by more than 1.5 percent, or $2.1 million, from the prior year. Since fiscal 2009, total operating expenses, as a percentage of adjusted net revenue, have declined 11.7 percent, or more than $18 million.

Klein said product lines, combined, showed a year-over-year improvement of more than $2 million. The medical oncology offices and the SECU Hospice House made the most significant improvement from last year.

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