Hospital reports ongoing revenue loss

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Pandemic affects CGH operational expenditures

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  • The Cibola General Hospital is experiencing cash issues due to operational expenses due to the pandemic. File photo - CC
    The Cibola General Hospital is experiencing cash issues due to operational expenses due to the pandemic. File photo - CC
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GRANTS, N.M. — Negative revenue numbers have affected Cibola General Hospital finances since the onset of the COVID-19 pandemic.

Jim Hermes, interim chief financial officer, reported pre-COVID average monthly net patient revenues were expected to be $2,378,000 for March through September. The hospital recorded a 36.9 percent loss of revenue for those months. April had the largest negative percentage, 56.5, and August, 9.7 percent, was the smallest monthly loss in patient revenue.

September projections were also for $2,378,000, but the month netted $1,747,037, which was a 26.5 percent loss in patient revenue, according to the CFO report.

The CFO pointed out the direct impact of the pandemic from March through the end of September included lost revenue, $4,800,902; staffing entrances, operating the COVID clinic and the Incident Command team accounted for $501,026 in ex-penditures; the hospital spent $160,200 for supplies; the delayed start of the Obstetric Department locums, $78,000, and TriCore Reference Laboratory testing, $142,155, brought the total to $5,682, 433.

The hospital was awarded a $1,853,250 grant at the beginning of this fiscal year, July 1, to off-set future pandemic-related losses, according to Hermes’ report to the ninemember CGH board last month. He acknowledged at the Oct. 26 session that $99,865 remained in the grant funding reserve as of Aug. 31.

Cibola Family Health Center visits were 1,599 in September compared to the patient year-to-date average for Aug.31, which was 1,651. The 2020 monthly average to date was 2,002.

(CFHC is the CGH medical clinic, which is a separate entity from the COVID clinic. No data was provided on the number of people who have been tested at the COVID clinic since the onset of the pandemic.)

“Overall operating costs were $55,000 over budget despite low [patient] volumes,” said the CFO. Monthly expenditures for contract locums and temporary staffing were lower than anticipated because “billing clean-up is complete” and lab positions have been filled. Projected operating expenses for September dropped from $600,000 to $400,000.

By contrast, CGH spent $291,000, which was a $44,000 increase, to supply the Bonita Clinic for full-time operations plus the cost to prepare “the bus to serve as the COVID clinic.”

Accounts receivable increased to 66 days, which was in line with projections but was higher than the target goal of 55 days.

The number of days of cash-on-hand grew from 292 to 314 because of a lump sum payment from the federal Medicare of $2.2 million, according to Hermes. The CFO included predictions from the Hospital Corporation of America that compared CGH statistics to other similar facilities. CGH had a 2.1 percent decline in admissions for the third fiscal quarter compared to HCA predictions of 4 percent. Similar facility emergency department visits were expected to be reduced by 20 percent compared to third quarter 2019 data; CGH recorded 18 percent.

Visit cibolahospital.com or call 505-285-5208 for more information.