Hospital's Audit Shows Progress Amid Ongoing Challenges
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on Thursday, October 24, 2024
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Spencer Hospital's annual audit report reveals significant improvements over the past year, despite persistent challenges with supply chain costs, workforce shortages, and patient revenue.
The hospital concluded the fiscal year with a negative operating margin of 0.9 percent, as detailed in the annual audit report presented at the October board meeting. However, when factoring in investment gains and other non-operating revenues, including capital contributions, the net income was a positive 4.8 percent.
Despite ongoing challenges, the hospital has made significant progress in enhancing its services and operational efficiency. The financial audit, conducted by Winther Stave & Co, LLP, highlighted several key areas of improvement in the financial condition of the hospital.
- Improved cost management.
- Reduced accounts receivable days.
- Strong performance of the investment portfolio.
- Continued investment in infrastructure.
Sam Johnson from Winther, Stave and Co. LLP informed hospital trustees that the institution remains financially stable, thanks to years of prudent fiscal management. “Managing costs and cash flow has been a top priority for management and these efforts are reflected in the audit,” Johnson stated.
Brenda Tiefenthaler, president of Spencer Hospital, remarked, “While the financial results reflect the economic pressures facing healthcare institutions nationwide, we take pride in the substantial improvements we’ve achieved. Our commitment to delivering high-quality care is unwavering, and we believe our ongoing efforts will strengthen our financial position in the future.”
Tiefenthaler underscored the hospital's commitment to reinvesting in healthcare services, particularly through the new emergency department. “This investment, along with our dedication to delivering exceptional healthcare, truly sets us apart. It’s this quality of care that has earned us recognitions like the 5-Star rating from the Centers for Medicare and Medicaid Services and a spot among the top 20 mid-sized rural hospitals in the country. We are committed to continuing to provide outstanding healthcare services to our community.”
Below is a condensed statement of revenues and expenditures for Spencer Hospital for the year ended June 30, 2024 (in thousands):
Operating revenues ............................. 120,495
Operating expenses ............................. (121,621)
Operating income (loss) ............ (1,126)
Non-operating income (expenses)........ 6,191
Income before contributions ...... 5,065
Capital Contributions ........................... 698
Change in net position ................ 5,763
Net position - beginning of year ........... 107,313
NET POSITION - END OF YEAR...... $113,076
A copy of the audit report is available for review in the Office of Auditor of State and the hospital administration office.
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