Tri-City Medical Center remains on target to record a profit for a second consecutive year, Chief Executive Officer Larry B. Anderson said.
Last fiscal year, the hospital posted a profit of $14.8 million. It was the first time in six years that Tri-City ended the fiscal year with a positive balance from operations. This fiscal year, the hospital expects to record a profit in excess of $7 million.
However, the estimated profit for the 2011-12 fiscal year that ends June 30 is below what the hospital had hoped, Mr. Anderson said. That’s because Tri-City Medical Center will post a loss for the month of April, its first in 22 months.
The estimated $2.9 million monthly loss is the result of a reconciliation of accounts receivable to what we believe will ultimately be collected. The adjustment is a result of the hospital’s continuing effort to match its collection of accounts receivable to its ongoing projections of collections.
"Tri-City Medical Center’s operations remain strong," Mr. Anderson emphasized. "We remain on target to finish the fiscal year with a profit."
Although cash collections in the last two months have been about $5 million above average, the increase wasn’t enough to offset the value of the accounts that became uncollectable, Mr. Anderson said.
Members of the Tri-City Healthcare District’s Finance, Operations and Planning Committee accepted the hospital’s financial statement for April on Tuesday and approved a motion to recommend to the full Board of Directors that it commend Mr. Anderson, Chief Operating Officer Casey Fatch and Chief Finance Officer Alex Yu for their transparency.
"That’s the way it should be," said Director Dr. Cyril Kellett, who sits on the committee.
About Tri-City Medical Center:
Tri-City Medical Center is a Gold Seal-approved, full-service, acute-care hospital with two advanced clinical institutes and physicians practicing in 60 specialties. The hospital, a leader in robotics and minimally invasive technologies, has served the community for more than a half-century. It is administered by the Tri-City Healthcare District, which includes parts or all of Oceanside, Vista, Carlsbad and San Marcos. For more information about Tri-City Medical Center, please visit www.tricitymed.org.