Fla. system sees higher revenue even as admissions drop
Lee Memorial Health System, Fort Myers, Fla., reported improvements in its operating surplus and revenue despite a drop in admissions during its fiscal 2013, which ended in September.
The three-hospital system realized $63.5 million in operating surpluses on nearly $1.3 billion in revenue, according to its financial report. That performance represents a 40% improvement over the $45.4 million in operating surpluses on $1.2 billion in revenue it reported the previous fiscal year. Its operating margin also improved to 2.8% from 1.5% the previous year.
However, the report noted a difficult operating environment, where adult admissions declined 2.7%, pediatric admissions, 4.4%, and neonatal cases, 1.8%. Patient days decreased 3.2%.
But the system saw a boost from outpatient activity, which led to an increase in adjusted admissions of 0.4%, as well as higher net patient revenue per adjusted admission, which increased 3.1%, or $41.5 million.
The system also reported that a greater percentage of its patients were on Medicaid, while it saw declines in its shares of commercial patients and Medicare beneficiaries.
Lee Memorial Hospital is the flagship of three-hospital Lee Memorial Health System, which reported a 2.8% improvement in its fiscal 2013 operating margin.