By Clyde Noel

El Camino Hospital’s finances look healthy, said Chief Executive Officer Lee Domanico.

The district’s current cash reserves total $196.9 million, approximately $1.6 million higher than the fiscal year 2002 audited. And days cash on hand continues to be significantly above the A+ bond rating criteria, he said.

The hospital’s financial stability has been under scrutiny as the district embarks on a $2.9 million hospital remodel to seismically upgrade the building.

Net operating margin is higher than budgeted and higher than A+ bond ratings due to the fact El Camino carries no debt with its related interest expense.

Average daily census was budgeted for 207, but the actual days of occupation were 219. The current period variance is favorable and remains higher than last year and higher than an A+ rated hospital.

The 12.5 percent net margin is greater than budgeted and merits an A+ bond rating due to nonoperating income sources and investment income.

Broken-down by departments: the surgical caseload is up to budget and 1 percent ahead year-to-date. Deliveries are below budget for year-to-date, but catching up and are now ahead of last year, Domanico said.

“Radiology procedures are on budget, but ER visits are below prior year and off because of the economy,” Domanico said. “We can’t attribute that to any trend.”

Days cash on hand is an important indicator because it measures the number of days the district could meet its average daily operating expenditures from cash reserves.

“Key performances are strong. Cash is strong and needs to be employed,” Domanico said.

The El Camino Hospital summary of financial operations covers the year-to-date through fiscal period 4, 6/23/02 to 10/12/02.

The A+ bond rating is related to the Standard & Poor’s 2002 not-for-profit health-care median for A+ rated hospitals audited financials.