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Lakeland Healthcare reports $2.8 million return to fund balance for 2024
Summary
Lakeland Healthcare Center closed 2024 with higher revenues driven largely by Medicaid and investment earnings, payroll savings from vacancies and a projected $2.8 million return to fund balance; staff cautioned budget planners on federal Medicaid uncertainty.
Lakeland Healthcare Center reported a stronger-than-expected financial result for 2024, with total revenues up about $1.7 million and an estimated $2.8 million return to fund balance, presenters told the Lakeland Healthcare Center Board of Trustees on April 23.
The increase in revenue was concentrated in Medicaid, which rose significantly in 2024, while Medicare revenue declined. “Most notably was in the Medicaid pay source,” Patty Mohorick, business office manager at Lakeland Healthcare Center, said during the trustees’ meeting. She and Alicia Van Dyke, LHCC and HHS administrative services manager, presented the year-end summaries.
Why it matters: the net gain gives the facility additional funds for capital projects already underway, but budget planners cautioned that federal funding uncertainty — particularly possible changes to Medicaid financing — could alter future revenue projections.
Board members were shown line-item effects that produced the $2.8 million figure. Revenue increases included about $460,000 in net resident revenue and roughly $526,000 in interest earnings, the presenters said. On the expense side, payroll came in roughly $1.2 million under budget, largely from open vacancies, and miscellaneous operating expenses were about $533,000 under budget. The presenters attributed $224,000 of payroll savings to audit adjustments (WRS and OPEB) and roughly $1 million to vacancies.
Accounts receivable (AR) rose in absolute dollars as monthly revenue increased, but the aging profile improved: accounts over 90 days made up 16% of AR in 2024 versus 24% in 2023 and 71% in 2019. Write-offs for 2024 totaled $4,976, about 0.4% of revenue, the presenters said.
Board discussion and context: trustees asked staff to be cautious in budgeting for 2026 because of the large, unplanned return; Van Dyke said the administration is considering budgeting payroll savings for the first time when preparing the 2026 proposal. Board members also noted that capital projects underway are the reason for some fund-balance swings in the revised budget figures.
Federal funding risks: board members were given context on potential federal cuts that could affect Medicaid and Medicare. A county HHS official summarized uncertainty in federal and state budgets and said the facility relies heavily on Medicaid — roughly 60% of LHCC revenue — and that any federal reductions could require state-level choices. The official noted CMS’s newly released 2026 Medicare rates for skilled nursing providers include a 2.8% increase in Medicaid reimbursement for the facility.
Looking ahead: presenters told the board they expect interest earnings to fall as capital funds are deployed for construction, and they recommended maintaining close monitoring of AR and write-offs and continuing enhanced OBRA tracking. The trustees did not take formal fiscal action at the meeting on these summaries.
Ending: board members thanked the presenters for the report and noted they will review related write-off approvals at the finance committee meeting the following day.
