- Published on Tuesday, 16 March 2004 19:57
- Written by Clyde Noel - Town Crier Staff Writer
Month after month El Camino Hospital posts record surplus accounts along with a higher net operating margin. The excess is allocated to the rebuilding project.
Since July 1, operating revenue from operations has resulted in $23.9 million net income with a net margin of 14.3 percent. Budgeted income for the period was $20.2 million. The net operating margin is higher than most other Peninsula hospitals because ECH carries no debt or related interest expense.
At the March 3 board of directors meeting, Chief Financial Officer Marla Gularte reported El Camino Hospital increased its revenue, patient volume and number of employees while reducing expenses in the seven-month period.
When CEO Lee Domanico was brought on board in 2000, net income was only $622,000. The improved financial performance is due to lower expenses and higher revenue through better contracts with managed care.
Net income from hospital operations is expected to be between $20 million and $25 million by the end of the fiscal year June 30.
During the year, El Camino committed $25 million to upgrade diagnostic equipment through a contract with Siemens AG. Siemens has agreed to install new equipment, then upgrade it when the new patient tower opens in 2008.