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Hospital board cites improving revenue and confirms $3 million loan to fund capital projects
Summary
At a late-November board meeting, hospital leaders reported October as their second-best revenue month in 12 months, noted AR days fell from 47.2 to 34, and said the city approved a $3 million loan the board plans to use for capital projects and equipment purchases.
The Alva Hospital Authority board heard financial updates and confirmed plans to use a recently approved $3 million city loan to fund capital projects.
Candace, the hospital’s chief executive officer, told trustees the hospital had a strong October, calling it “the second best in 12 months,” and said net revenue was up 16% since January while accounts-receivable days fell from 47.2 to 34. She thanked the city council for approving a $3 million loan that she said “will go towards helping us fund those projects, those capital projects.”
Why it matters: the loan proceeds are being positioned to cover replacement equipment and other capital needs at a time the hospital is increasing revenue and reducing AR days, which trustees and staff presented as signs of improved financial stability.
Chief Financial Officer Kelly reviewed October results: the hospital ended the month with about $153,000 in cash, accounts payable near $531,000 and gross revenue exceeding $2.5 million. She said October net income was $105,674 and the hospital’s year-to-date net position was $166,178, an improvement of roughly $578,000 from the prior year. Kelly also noted a payable tied to the Medicare cost report will be posted Dec. 1 and explained the hospital expects to file the cost report with Medicare on Dec. 1.
Kelly said staff expect to close on the loan “on or around December 10” and that proceeds will be held in a higher-interest account until disbursements for projects are needed. “We’re going to wait until sales tax comes in and we make our December payment at Bank of Oklahoma,” she told trustees, describing the mechanics the hospital will use before closing with F&M Bank.
Board members asked no substantive follow-ups and voted unanimously to accept the written CEO report and to note the financial filings presented.
The meeting also covered related items that affect operations, including audit engagement letters and staffing approvals (see separate items). The board did not adopt any new long-term financing beyond the loan described; the next steps noted by staff are the Dec. 1 cost-report filing and the loan closing timetable.
