Palomar spent roughly $956 million on the new 288-bed, 11-story hospital. The health system’s fiscal year runs from July to June, and in the first quarter of this fiscal year, Palomar lost $6 million compared with a budgeted profit of $9 million.
Palomar CFO Robert Hemker said in the report that he and other executives knew the high start-up costs would hinder short-term finances — for example, the health system has a monthly bond payment of $2.8 million — but they also didn’t expect a sluggish rate of revenue growth.
“We’re monitoring the situation,” Mr. Hemker said in the report. “I’m not going to use the word ‘concerned.'”
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