Washington hospital lost $3.5M in July; patient revenue 20% under budget

Olympic Medical Center lost more than $3.5 million in July as stagnant patient volumes and low reimbursement rates continue to challenge the Port Angeles, Wash.-based hospital, the Peninsula Daily News reported Aug. 19. 

Olympic Medical Center recorded $17.6 million in patient revenue for the month, a 20 percent drop from the $22 million it had budgeted, according to the report. 

A key factor in the drop in revenue was a decrease in the number of patients using commercial insurance. Compounding the loss were expenses related to a long-term, at-risk patient who was discharged, but whose charity care cost Olympic Medical Center $750,000, CFO Lorraine Cannon told the Peninsula Daily News

The Washington Health Care Authority has provided Olympic Medical Center with an unrestricted $458,000 distressed grant, given to hospitals that lacked adequate cash on hand to remain financially solvent, experienced financial losses during fiscal year 2022 or were at risk of bankruptcy. 

The hospital ended 2022 with a $16.1 million operating loss and reported a $7.9 million operating loss in the first four months of this year, according to the report.

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