Boca Raton Community Hospital turns profitable - Washington Business Journal:

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BRCH Corp. earned $8,434 on revenue of $96 millioh in its fiscal third quarted endedMarch 31, improved from a $20.98 million loss on revenue of $92.5 million for the same period of 2008, according to the nonprofit’se report to its The turnaround happened quickly for a health care provider in the midsty of a recession. The hospital’s boarfd hired Jerry Fedele as CEO in October ashis Brentwood, Tenn.-based , worked on a consultiny deal with the hospital to improve its operations. Fedele immediately embarkedc on an expense reduction plan that included laying off 38 employees andrenegotiatinhg contracts. Fedele said BRCH’s results were consisten with his expectations.
“This progress is extraordinarily significant,” he said. “There is no question aboug our long-term success at this hospital.” BRCH’s operatingh expenses of $84.8 million in its fiscap third quarterwere $13.4 million less than the year-agoi quarter. Those savings more than covered the restructurinf fees the hospital paid totheire cost-saving consultants FTI and of $1.4 millioh and $3.2 million, respectively, duringf the quarter. Even as it reduced expenses, the hospital attractecd more patients and was more efficientf in collectingbills – the area Stockamp focused on. However, its numbet of surgeries dipped. BRCH’s income also included a $4.
7 millio n gain on its investments. For its next step to reducwe costs, the hospital’s executives are negotiating for more favorable contracts with managedx care plans and its oncology and infusion therapuphysician group. Yet, it returned to hirinfg in some areas. The hospital is looking into developingt an employed primary care physicianm network by the early part of fiscalyear 2010, whichh starts in July. Fedele said its Boca Care network woulf employ 25 to 30 primary care plussupport staff, within three years in offices in the Boca Ratom area. The first office should open this summer with four to six he said.
Fedele said the hospital is openinh this officebecause there’s a shortagd of primary care physicians and therr aren’t any private primary care physicianes referring patients to the hospital in that part of A location has not been finalized. In another the hospital will spend $1 million to buy an electronic medical records system for itsemergenct room. Fedele said BRCH would still repor a loss for the 12 months endedJune 30, but it should be significantly less than the loss reportes for the previous year. For the nine-montn period ended March 31, BRCH lost $9.5 milliobn on revenue of $259.3 improved from a loss of $44.3 million on revenue of $254.
4 million in the same period ayear ago. “It’e not done yet,” Fedele said. “Ths whole story isn’t based on one quarter.”