Hospital in black despite challenging fiscal year

"We were confronted with the loss of local full-time orthopedics for the first time in many years. This loss occurred at a time when planning for a major building addition and renovation project was in full swing," he told the board of directors recently.

It was also just before a worldwide economic downturn the magnitude of which we haven't seen for decades.

"To add further to the mania, let's toss in the effects of the 2008 national elections and the potential for 'healthcare reform,'" Bruntz said.

Community Hospital met these challenges head on and in fiscal year 2009 came through with spectacular results, he said. The hospital's total revenue declined but so did operating expenses, he said.

"Our efficiency allowed us to generate revenue in excess of expenditures of $1.9 million for the fiscal year ended June 30, 2009 (2009) and a total margin of 6.7 percent, Bruntz said.

Orthopedic services declined drastically for much of 2009 compared to fiscal year 2008. In the second half of 2009, orthopedics picked up from arrangements made with visiting specialists.

"Our pursuit of a full-time local orthopedic surgeon continues. Growth did occur from a variety of services in 2009 compared to the prior year," he told to board.

"Our CT Scans have continued to grow as well as scope room procedures, ultrasound tests, and specialist clinic visits. We continue to add to our already diverse and vast array of specialist services provided here at home.

"We were successful in 2009 at securing a commitment from the United States Department of Agriculture for direct loans and guarantees for commercial loans in amounts up to $17 million and $15 million, respectively. These funds along with $2.7 million of Community Hospital funds will be used to build new patient rooms, new operating room facilities, and renovate some existing space.

Officials are very pleased with the availability of funding from all sources especially given the current economic environment. The hospital is very conscious of project costs and anticipates using much less than available. Planning continues in fiscal year 2010 but much of the design and financial plans were developed in 2009. The project will be completed in two phases. Phase one begins in September 2009 and should take about 14 months to complete. Phase two will begin following phase one and should be completed by March or April of 2012.

The costs for planning phases one and two have been accumulating in 2009 as deferred construction. Additional major asset purchases during 2009 included the post-discharge electronic medical record, computerized medical imaging and archival of radiology tests, an in-house MRI, and an expansion of the Trenton rural health clinic.

In total the hospital added $3.7 million of building renovation and equipment. Hospital investments grew another $1.5 million during 2009. This positions the hospital well for funding a portion of the major construction project and to provide the security lenders will require.

The hospital's total assets grew $2.0 million to $25.5 million in 2009.