Spencer Hospital cost management initiatives prove successful

Spencer (Iowa) Hospital's 2014 fiscal year audit report revealed the hospital's cost management initiatives have achieved solid financial outcomes, according to a Spencer Daily Reporter article.

Despite experiencing leaner service volumes and declining reimbursement levels from the federal government and commercial insurance payers, Spencer Hospital's revenues totaled nearly $66 million by the fiscal year end, up from the previous fiscal year.

Spencer's expenses decreased slightly to nearly $62 million, leaving the hospital with an operating income of roughly $4 million.

The audit also revealed charity and uncompensated care decreased from $3.4 million to $3.2 million in FY 2014, a 4.4 percent decrease from the prior year.

Spencer Hospital President Bill Bumgarner expressed pride in how well the hospital has met patient needs without having to lay off employees or take any drastic cost reduction actions.

Spencer Hospital's relative success can be attributed largely in part to the incremental cost management initiatives that have been implemented over the past few years.

For instance, Spencer hospital responded to service volume changes by changing staffing models, renegotiating contracts with suppliers and seeking out new revenue opportunities.

 

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