(Spencer)– Spencer Hospital trustees reviewed preliminary financial results for the fiscal year ending in June at their regular monthly meeting earlier this week.
Vice President of Finance Mark Gaworski reported the figures were slightly below what was budgeted. He says it’s the result of lower service volumes over the past six months. He says reductions in Medicare reimbursement associated with the federal government’s two percent budget cuts related to the sequestration process also contributed to the decline in revenue.
Hospital President Bill Bumgarner told trustees the hospital has been bracing for the expected reductions in payments and service volumes related to federal budget issues and healthcare reform efforts. He says they’ve reduced staff levels as possible when turnover occurs and have initiated a variety of cost management strategies.
Bumgarner added that hospital profitability is expected to decline across the industry for the foreseeable future. He says adapting the hospital’s cost structure will be an on-going process and require measured change in order to maintain the financial health of the organization.
