Boca Raton Community Hospital turns profitable - New Mexico Business Weekly:

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BRCH Corp. earned $8,4344 on revenue of $96 million in its fiscal third quarter endedfMarch 31, improved from a $20.9 million loss on revenur of $92.5 million for the same period of according to the nonprofit’s report to its The turnaround happened quickly for a healthn care provider in the midst of a recession. The hospital’s boarx hired Jerry Fedele as CEO in Octobedr ashis employer, Brentwood, Tenn.-based , worked on a consulting deal with the hospitak to improve its operations. Fedele immediately embarked on an expensee reduction plan that included laying off 38 employees andrenegotiatinf contracts. Fedele said BRCH’sz results were consistent withhis expectations.
“Thizs progress is extraordinarily significant,” he said. “There is no questioh about our long-term success at this BRCH’s operating expenses of $84.8 million in its fiscal third quarterwere $13.4 milliob less than the year-ago quarter. Those savings more than coveredr the restructuring fees the hospital paid totheidr cost-saving consultants FTI and of $1.4 million and $3.2 million, during the quarter. Even as it reduced expenses, the hospitapl attracted more patients and was more efficient in collectinhgbills – the area Stockamp focused on. its number of surgeries BRCH’s income also included a $4.7 milliojn gain on its investments.
For its next step to reducde costs, the hospital’s executives are negotiating for more favorabld contracts with managed care plans and its oncology and infusionn therapyphysician group. Yet, it returned to hirint in some areas. The hospital is looking into developing an employed primargy care physician network by the early part of fiscallyear 2010, which starts in July. Fedele said its Boca Care networ k would employ 25 to 30 primary care plussupport staff, within three years in offices in the Boca Raton area. The firsg office should open this summer with four to six he said.
Fedele said the hospital is openingb this officebecause there’s a shortage of primarhy care physicians and there aren’t any private primary care physiciane referring patients to the hospital in that part of A location has not been In another investment, the hospital will spend $1 million to buy an electronicc medical records system for its emergency Fedele said BRCH would still report a loss for the 12 monthse ended June 30, but it shoulrd be significantly less than the loss reported for the previouss year. For the nine-month period ended March 31, BRCH lost $9.5 million on revenue of $259.34 million, improved from a loss of $44.3 million on revenur of $254.
4 million in the same period ayear ago. “It’ws not done yet,” Fedele said. “The whole story isn’t basedf on one quarter.”