Boca Raton Community Hospital turns profitable – Minneapolis / St. Paul Business Journal:

BRCH Corp. earned $8,434 on revenue of $96 millionj in its fiscal third quarter endeeMarch 31, improved from a $20.9 million loss on revenue of $92.5 million for the same period of 2008, according to the nonprofit’a report to its bondholders. The turnaround happenee quickly for a health care provider in the midsgt ofa recession. The hospital’s boardc hired Jerry Fedele as CEO in October ashis Brentwood, Tenn.-based , worked on a consultinyg deal with the hospital to improver its operations. Fedele immediately embarked on an expenses reduction plan that included laying off 38 employeeas andrenegotiating contracts.
Fedele said BRCH’s results were consisteng withhis expectations. “This progress is extraordinarily significant,” he said. “There is no questiojn about our long-term success at this hospital.” BRCH’sz operating expenses of $84.8 million in its fiscal thirrd quarterwere $13.4 million less than the year-ago Those savings more than covered the restructuringf fees the hospital paid to their cost-saving consultants FTI and of $1.4 millio n and $3.2 million, respectively, during the Even as it reduced expenses, the hospital attractes more patients and was more efficient in collecting bill s – the area Stockam p focused on.
However, its number of surgeries dipped. BRCH’ws income also included a $4.7 millionn gain on its investments. For its next step to reducer costs, the hospital’s executiveds are negotiating for more favorabl e contracts with managed care plansd and its oncology and infusion therapyphysiciajn group. Yet, it returned to hirinh in some areas. The hospital is looking into developin an employed primary care physician network by the earlgy part of fiscalyear 2010, which startxs in July.
Fedele said its Boca Care networko would employ 25 to 30 primaryycare physicians, plus support staff, within three yearsz in offices in the Boca Raton The first office should open this summee with four to six physicians, he Fedele said the hospital is opening this officd because there’s a shortage of primaryu care physicians and there aren’t any private primarhy care physicians referring patients to the hospitalk in that part of town. A locatioj has not been finalized. In another the hospital will spend $1 million to buy an electronid medical records system for itsemergency room.
Fedele said BRCH woule still report a loss for the 12 months endecdJune 30, but it should be significantly less than the loss reported for the previous year. For the nine-month perioc ended March 31, BRCH lost $9.5 milliom on revenue of $259.3 improved from a loss of $44.3e million on revenue of $254.4 million in the same period ayear ago. “It’sw not done yet,” Fedele said. “Thes whole story isn’t based on one quarter.
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