Spencer Hospital audit shows solid financial performance
Officials with Spencer Hospital suggest the medical facility's recent audit report reveals the hospital experienced solid financial performance due to consistent patient service volumes and careful cost management. The audit was conducted by Winther, Stave & Co., LLC for the fiscal year which ended June 30, 2012.
"Our healthcare team's primary objective each day is to meet the healthcare needs of the people in our region," Spencer Hospital President Bill Bumgarner said. "While providing those services, we must also maintain the financial integrity necessary to support continued investment in our facility infrastructure and new technology."
The audit report shows the hospital's revenues totaled $67,720,123 for the year ended June 30, 2012, which is a 4 percent increase from the prior year. The revenues included $63,702,534 in net patient revenue, $2,135,814 of other operating revenue, and $1,881,775 of clinic revenue. The hospital does not receive any tax revenues from the city or county, reported John Toale, CPA with Winther Stave & Co., LLP.
The audit report also shows that the hospital's charity and uncompensated care for the year totaled $3.25 million, a 4.1 percent increase over the prior year amount, which was $3.12 million.
Expenses for the year totaled $60,890,843, a less than 1 percent increase from the prior year, and included $29,367,956 salaries and benefits, $20,836,422 for supplies, services and other costs, $4,859,122 for prescription drugs, and $5,827,343 for depreciation expense on the hospital's plant and equipment.
Mark Gaworski, Spencer Hospital's vice president of finance, said, "The Winther Stave auditors continue to be pleased with the financial systems that have been in place for many years to ensure integrity and due diligence in the management of the hospital's finances. I'd also like to recognize the efforts of departments and co-workers throughout the hospital who work diligently to manage costs while providing quality care and service."
A condensed statement of revenues and expenditures for Spencer Hospital for the year ended June 30, 2012 (in thousands):
|Excess of revenues over expenses before contributions||$6,564|
|Change in net assets||$6,612|
|Total net assets -- beginning of year||$76,853|
|Total net assets -- end of year||$83,465|
- A copy of the audit report is available for review in the Office of Auditor of State and the Hospital Administrator's office.