May 24, 2019 CEO Update

CEO UPDATE TO SHS STAFF:

On Wednesday, we had the opportunity to again present our Board another month of excellent financial results.  We were very busy during April.  All in all, it was one of the busiest months this organization has ever experienced resulting in record gross charges.  We held our costs down and a combination of higher revenue and lower costs is usually a very good combination as it was for SHS this month.

Overall, we continue to experience excellent cash collections which is reflective of our increasing revenue and also improvements that are being realized in our revenue cycle.  The Revenue Cycle group has addressed and continues to address a number of issues that affect not only the amount of dollars we collected but also the timeliness of those collections.  As we all have heard by now a major issue a year ago was the amount of cash we had on hand and the fact that our cash balance had fallen to a dangerous level.  The revenue cycle improvements above have assisted in providing a steady increase in our cash on hand.  We finished April with 46.51 days cash on had up from 15 days in April, 2018.  We continue to add about 2 days a month which puts us on target to exceed the established expectations of our lenders.  The chart below shows our days cash on hand progression.

As you can see, we are already exceeding our June 30, 2019 goal and are well on our way to exceeding our December 31, 2019 goal.

It is also important to note that concurrent with increasing cash we have also reduced our amount due to our suppliers, accounts payable, by over a 1.0 million during this same time.

On a year-to-date basis, we are now about $3.0 million ahead of prior year for Gross Patient Revenue and about $2.4 million ahead for Net Patient Revenue (the amount we expect to collect from our services).  In addition, our total expenses are down about $1.5 million including the additional expense related to the new construction.  When you exclude Interest and Depreciation related to the construction, total operating expenses are down nearly $2.8 million.

The combination of the increased revenue and reduced expenses has resulted in a substantial increase in our bottom line.  Our EBIDA, (Earning before Interest, Depreciation and Amortization) has increased from a negative ($2,044,582) to a positive $3,080,817 for an improvement of over $5.1 million year-to-date in 2019.  This represents an EBIDA margin of nearly 16% which is outstanding for a healthcare organization.  As I have said before, this has only been accomplished due to your hard work and effort to turn this organization around.  Thank you for all your hard work.

 

MARKET STREET:

The closing date for the sale of the Market Street property has been pushed back to June 24, 2019.  However, we will continue on track with the movement of the traveling physicians that will be relocating from Market Street to the SHS hospital building, 2nd floor location. (The previous Medical/Surgical Wing).  This will affect Dr. Silva, Dr. McLaughlin, Dr. Mannas and Dr. Chaney-Roberts.  

 

 

 

 

 

 

 

 

 

 

MEDICAL STAFF ADDITIONS:

As previously communicated, we have a few new medical providers that will be joining us in the near future:

  • Melissa Sims, NP has already joined us and is working in the SMG Clinic.
  • Susan Lanningham will be starting July 1 and will be located in the SMG Clinic.
  • Charlotte Barry will be starting this summer, we are hoping in July and will most likely be located in the Mancos Clinic.
  • We have a signed contract with Dr. Flemmings who will be joining our ER staff this summer.

Other upcoming SMG Practice changes:

  • Maria Cornelius will be stepping away from her clinic practice in Mancos this summer and will be working as a Hospitalist.
  • Dr. Daney will be moving from the SMG Clinic to the Mancos Clinic this summer.
  • Crysta Jones, NP will be transitioning from Mancos Clinic to the walk-in clinic this summer.

As we head into the Memorial Day holiday weekend, I want to wish everyone a safe and relaxing time.  Please take this time to remember the ones that are no longer with us, and those that have sacrificed all.

 

Tony