By Clyde Noel
While most department heads had nothing to report, and only two directors were present for the Aug. 14 meeting of the El Camino Hospital District, the highlight of the evening was Chief Financial Officer Marla Gularte period 13 financials.
“This report is significant because it shows positive results from the core operation,” Gularte said. “These figures will serve us well as we rebuild the hospital.”
Operating income for the period June 24, 2001, to June 22, 2002, was $219,133,929. Operating expense was $211,522,327 for the same period. The difference indicates net income of $7,581,602. Of significant importance was the net operating margin of 3.5 percent.
El Camino Hospital District revenues are presented as key indicators. Reference to A+ bond ratings by Standard & Poor are the norm for the hospital to beat. In the case of the Net operating margin of 3.5 percent, it is higher than budget and higher than an A+ bond rating medians. Significant to this figure is the fact that the hospital carries no debt.
In every category except one, hospital figures were better than the norm for the A+ bond rating.
Year-to-date average daily census is down. The average is down as patient day and discharge volumes fall short of budget in many of the nursing units. Most significant are the losses in Adult Subacute, surgical, maternity, psychiatry, nursery and telemetry nursing units.
Although average daily census is under budget at 233 admissions a day, it is higher than the prior year.
Another significant indicator that exceeds the median for A+ bond rating is the net margin of 11.4 percent.
This continues to be significantly greater than budget due to non-operating income sources such as investment income and tax revenue.
Days Cash on Hand measures the number of days the district could meet its average daily operating expenditures from cash reserves.
Current cash reserves total $192.5 million, approximately $31 million more than last fiscal year-end.
There is a side indicator for bad debt as a percentage of net operating revenue. Where the A+ bond rating is 4.7 percent, the hospital percentage is 3.4. El Camino Hospital continues to be below the criteria due to having a small percentage of self-pay accounts.
Director Dave Reeder commented that these excellent figures are the result of an aggressive budget.
“The staff needs to be commended because we have over-achieved,” Reeder said. “We are able to maintain our service and patient satisfaction and now we can move forward with plans to rebuild the hospital.”
