Mon Health plans turnaround after losing nearly $27M in 2018

Mon Health ended fiscal year 2018 in the red, but the Morgantown, W.Va.-based system aims to turn around its finances through an operations improvement plan, according to The Dominion Post.

Here are nine things to know:

1. Mon Health is the parent company of Morgantown-based Mon Health Medical Center, Kingwood, W.Va.-based Mon Health Preston Memorial Hospital and Weston, W.Va.-based Mon Health Stonewall Jackson Memorial Hospital.

2. The system ended May with an operating loss of $26.9 million, according to internal financial documents obtained by The Dominion Post and the publication's discussions with interim CEO Tom Senker. When fiscal year 2018 ended June 30, the system's operating loss had shrunk to $26.5 million.

3. Mon Health Medical Center ended fiscal year 2018 with a $7.5 million surplus. However, Mon Physician Services lost $19.7 million through the end of May, dampening the system's financial picture, according to the report. Mr. Senker said expenses from acquiring physician services contributed to the loss.

4. Additionally, the system saw patient volume fall about 9 to 10 percent over the last 12 to 18 months, Mr. Senker told The Dominion Post.

5. The report also said increased salaries and competition in secondary markets contributed to the system's financial picture.

6. Mon Health's internal financial documents reference "executive management changes" as well, according to the report. Darryl Duncan, the former CEO of Mon Health, was placed on leave earlier this year after more than 20 physicians at Mon Health's flagship hospital signed a letter of no confidence in him. In July, Mr. Duncan was accused of harassing his replacement.

7. Mr. Senker, amid those leadership changes, emphasized the system's recognition for quality, patient experience and patient safety to The Dominion Post.

8. According to the report, the system aims to see positive results as it continues its operations improvement plan. The plan will include pharmacy, revenue cycle, physician practice and workforce efficiency. In July, the system canceled employees' pay raises for one year.

9. According to the report, Mon Health system hopes to break even in fiscal year 2019.

Read the full report here.

Alyssa Rege contributed to this report.

 

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