Trending
Our opinion: Seeing positives at hospital
Warren General Hospital's roughly $1.5 million loss during the last fiscal year is a punch in the gut after five years of the hospital turning a profit.
Believe it or not, though, the news could have been worse.
The hospital's service volumes and gross revenue increased, yielding a minimal net revenue increase.
Expenses simply increased more than revenues resulting an overall 1.5% net loss. Using staffing agencies and travel nurses to staff the hospital, negotiated salary increases, drug manufacturers circumventing government-required discount programs and overall inflation are the major drivers behind the expense increases.
Overall, the hospital is performing better than other small hospitals in western Pennsylvania according to information presented during the hospital board's annual meeting. While the hospital operated at a net 1.5% loss, other hospitals with less than 100 beds averaged a 3.7% loss.
"More people are seeking care at Warren General," said Rick Allen, Warren General Hospital CEO. "We're seeing our reach extend."
The hospital is also expanding, acquiring Warren Medical Group pediatrics services and Warren Medical Group OB-GYN services as well as opening new office space for it and urology services. Warren General Hospital also acquired a DaVinci Surgical Robot platform through $1.2 million in grants and donation, was granted a five-year extension of the Highmark Community Reinvestment grant, nearly completed a $1 million renovation of the maternity unit and office renovations needed to meet state Department of Health standards. The hospital has also completed a housing unit for an incoming generator. The hospital is set to go live in December with a MediTech Expanse electronic health record software.
What happened in the past year at Warren General is different than the hospital's past financial issues. The hospital isn't deferring improvements as it had in the past, and it's not hard to see a path back to profitability if costs driven higher by inflation come back to earth and the hospital finds a way to add nurses to the payroll rather than using contracted services.
No one wants to see the hospital lose money, but at least there are some positives in this financial report.