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"Schneider Regional Medical Center’s new chief financial officer, Scott Nothnagel, stressed the “critical financial state” of St. Thomas-St. John’s medical facilities during his report to the board. SRMC, which includes Schneider Hospital, Myrah Keating> >Smith Community Health Center and> Charlotte Kimelman Cancer Institute, took a loss of $14.5 million in Fiscal Year 2015, Nothnagel said, an amount that is primarily being financed by the hospital’s vendors. The medical center’s debt to its suppliers rose from $19,283,500 in September 2014 to $27,231,520 in September 2015.
“We’re at a point where that credit’s not going to be extended any longer. So it’s been a very difficult struggle to get supplies and resources into the organization,” said Nothnagel."
"Although St. Croix’s JFL also has “colossal debt,” $52 million worth according to Chief Financial Officer Tim Lessing, the hospital’s situation is showing signs of improvement. Over the last five months the hospital has seen a 60 percent improvement in its gross charges, Lessing said.
The hospital’s total operating revenues are up nearly 70 percent from FY14, according to Lessing’s report. Total expenses are down 14.44 percent.
“We have a fabulous story to tell,” said Lessing. “I think what we’ve seen in the last year is an increased awareness of not only the fiscal responsibilities of an organization and understanding the business aspect of healthcare, but also how it plays into our community.”
Lessing said he expects FY16’s numbers to improve another 35 percent.
Signs that the financial standing of JFL has begun to turn around does not mean the hospital is seeing positive cash flow, however.
“It’ll be a long time before we see a positive cash flow day,” Lessing said. He explained to the board that the hospital’s problems are partially due to broader economic conditions on St. Croix."
Posted : October 27, 2015 8:58 am