South Peninsula Hospital reports improved finances, outlines EMR conversion and staff housing plans

South Peninsula Hospital reported stronger financial results and detailed multiple capital and service projects during a 10‑minute quarterly presentation to the Kenai Peninsula Borough Assembly on May 6.

Angela Hannigan, chief operating officer for South Peninsula Hospital in Homer, told the assembly the quarter ending March 31 showed a 17.5% increase in gross patient revenue and a 36% increase in net income year over year. Much of the operating‑income improvement reflected a $5 million Medicare cost‑report settlement from the prior fiscal year, Hannigan said.

Hannigan also outlined several operational initiatives:

- Epic electronic medical record conversion: The hospital has a $7 million loan from the borough to support conversion to the Epic EMR platform. Hannigan said about $1.5 million of the $7 million had been spent by early June and that the hospital expects to make a large payment to Epic in June. Training is set for June with a planned go‑live Aug. 9–11. The Epic deployment is intended to improve record sharing with regional partners and patient portal access.

- Staff housing: Contractor delays pushed groundbreakings later than planned. The hospital expects construction to start in May with about a year of building time; initial occupancy is expected for 13 of the planned 25 units intended for temporary and locum staff.

- Childcare: The hospital has received $1.3 million previously and an additional $780,000 from an innovation grant to support a childcare facility aimed at serving hospital staff and the local community. Delays in construction pushed the opening timeline; the hospital hopes to open in the summer.

- Generator and infrastructure projects: Hannigan said the hospital is advancing generator and infrastructure work. She said the borough helped secure a $5 million congressional discretionary appropriation to support the generator project.

Hannigan also briefed the assembly on staffing and service line updates: surgical volumes and outpatient imaging, pharmacy and lab services were up; long‑term care census increased to an average of 27 residents per day from 23 the prior year; the hospital is hiring new pediatric, radiology and hospitalist staff; and the hospital reported a 55% increase in charity care offset by an 8% decline in bad debt, which Hannigan described as improved access to financial assistance for patients.

Hannigan closed by honoring longtime service area board member Roberta Hyland, who died April 25; she described Hyland’s nearly 17 years on the board and community advocacy.

What the assembly heard and next steps

Assembly members asked Hannigan about the benefits of Epic and how the conversion could improve care coordination with Anchorage tertiary centers; Hannigan said the shared Epic platform will allow specialists to access records and improve patient care transitions. Several assembly members and the mayor also discussed bond projects and capital priorities later in the meeting; Hannigan summarized that the hospital is working with the borough and the mayor’s office to pursue strategic properties and additional grants to support capital needs.

Speakers (attributed in article)

- Angela Hannigan — Chief operating officer, South Peninsula Hospital (presentation) - Mayor Michicky — Mayor, Kenai Peninsula Borough (comment during…