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Finance team moves financial statements to informational; presents plan to cut $6.2 million in expenses
Summary
Staff presented February statistics and financial statements as informational while they continue data validation after Cerner conversion, and outlined a pathway to reduce about $6.2 million through hiring pauses, contract‑labor reductions and contract service eliminations.
Hospital finance staff presented February financial statistics and moved financial statements from approval to informational status while the team completes reconciliations following an electronic health record conversion. The board heard operational metrics, including an average daily census of 46.4 for February compared with a budget of 31, and clinic visit volumes, and discussed variances in net patient revenue and expenses.
Keith Perrin presented high‑level February results and said staff want the statements to be informational rather than formally approved until due diligence is complete. Perrin said February net patient revenue for the month was below budget, year‑to‑date revenue was approximately $45.4 million compared with a budget of about $41 million, and monthly expenses included higher salary and contract labor costs. The board also heard that cash was low post‑conversion but that collections were accelerating: March collections were reported at about $4 million with two days remaining in the period and February cash at about $3.3 million.
Leadership described a multi‑part plan to reduce roughly $6.2 million in expenses through (1) a hiring pause and position‑control governance to evaluate replacements and role necessity; (2) reductions in contract labor (targeting about $5 million in reductions carried into the next fiscal year through vendor terminations and transitions); (3) cuts to certain contract services (about $1.2 million identified); and (4) operational changes to underperforming clinics, including a review of weekend urgent‑care staffing patterns. Executives said some contract and staffing reductions will phase in over several months and that savings would begin to appear in the next fiscal year.
Board members asked for clearer categorization of contract labor versus contract services and for regular visual reporting of expense trends. Leadership said contract‑management forms and position‑control governance will be revised and that specific vendor terminations and timelines will be presented to the board as they are finalized.
The committee agreed to treat the financial statements as informational while the finance team completes reconciliations and returns for future approval.
