The high cost of heating is showing up on Cook County North Shore Hospital books, but offsetting that cost was an increase in business in several departments over the first two months of 2011.
Hospital Controller Yvonne Gennrich told the board that while expenses remain about the same, revenue fluctuates, and revenue is what makes a difference with the bottom line.
Utility costs for the first two months of the year were $77,069, significantly higher than the $70,157 spent in January and February of 2010. Most of this is due to the higher cost of heating fuel, Gennrich said.
Numerous departments including ER, physical therapy, cardiac rehab, lab, radiology/ EKG, pharmacy, and ambulance, saw more business so far this year than they did at this time last year. For example, the hospital did 83 CT scans in February, Gennrich said, and the break-even number is in the 50s.
The most recent audit shows that the facility had about a $416,000 loss for 2010.
Analysis of Care Center
The board approved entering into a contract with LarsonAllen, a nationwide accounting and consulting firm with an office in Minneapolis, to assess Care Center operations and develop computer software that will be used to create various options and corresponding financial models for dealing with ongoing operating losses. Their bid was $15,000.
St. Luke’s Vice-President Sandra Barkley recommended the firm and said they did a good job with an analysis of Lake View Hospital in Two Harbors. The person who will be creating the modeling software comes “highly recommended,” Administrator Wraalstad said, adding, “I don’t think he sleeps!”
Nursing homes are the second-most regulated agencies in the U.S., Wraalstad said, second only to nuclear facilities. More regulation equates to higher cost, she added.
The hospital continues to investigate the possibility of bringing assisted living to the community. Barkley said most assisted living facilities in Duluth are struggling financially. Board member Kay Olson said her father-in-law pays close to $6,000 a month for assisted living services in Duluth. Board member Sharon Bloomquist, however, said her mother in Arizona pays $150 a month for a nurse to come to her home and administer medication each morning.
Pharmacy dispensing cabinets
The board approved purchase of three cabinets that dispense medicines after hours. The pharmaceuticals will be authorized by pharmacists at St. Luke’s Hospital. The company providing the cabinets and annual maintenance is Omnicell, which came down in price from $172,087 for two cabinets to $104,354 for three.
“The Cadillac price has been coming down,” said Wraalstad. “They want to work with us.” She said Omnicell also wants to work with St. Luke’s, North Shore Hospital’s administrative partner. She hopes it will increase the percentage of charges that are “captured,” since records will be kept automatically by computer when the medicines are dispensed instead of solely recorded by hand.
New clinic doctor
Dr. Milan Schmidt has accepted an offer to join Sawtooth Mountain Clinic. He has already been working there some of the time but will join the staff full-time probably in September, Dr. Sandy Stover reported. He had a private practice in southern Minnesota and is looking forward to being part of a team, she said.
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