Phoebe operating income improves in FY 2017

ALBANY — Despite a challenging year, Phoebe Putney Memorial Hospital ended Fiscal Year 2017 with a positive operating income, an audited financials report presented Wednesday to the hospital board showed.

For FY 2017, which ended June 30, Phoebe had an operating margin of 0.3 percent. The margin in FY 2016 was -1.9 percent.

“Considering all the challenges facing Phoebe and other safety net hospitals, the continued lack of Medicaid expansion in Georgia, and the lingering uncertainty with federal and state health care legislation, Fiscal Year 2017 was exceedingly strong for Phoebe,” Brian Church, senior vice president and CFO for Phoebe Putney Health System, said.

“Multiple financial improvement efforts led directly to a better financial performance as we reached our financial goals for the year. The hospital’s revenue increased, and our operating margin improved from -1.9 percent the previous year to 0.3 percent in FY 2017.”

Operating income ended at $1.4 million, up from -$9.7 million in FY 2016.

“We continue to monitor health care reform efforts and plan for potential changes that could impact our bottom line,” Church said. “Phoebe is committed to providing outstanding health care services to all our patients while maintaining the highest standards of fiscal responsibility.

“While our operating margin remains modest due to external pressures, we look forward to another successful financial year in FY2018.”

The hospital board unanimously approved the audited financials report, which was presented by Jeff Wright and Steven Harrell with Draffin & Tucker.

The report showed that in FY 2017:

— Phoebe provided $60 million in uncompensated care, which includes charity and indigent care services;

— Of that $60 million, $36 million was for Dougherty County residents and $24 million for other counties;

— Phoebe’s health and wellness employee programs and encouraging employees to take advantage of lower-cost medication through the employee pharmacy helped lower employee health insurance costs by $4.5 million;

— Phoebe spent more than $5 million on community health improvements;

— More than 8,000 people attended Phoebe community health education programs and health fairs.

In addition, Phoebe provided free flu shots and colorectal screenings, and provided school nurses to the Dougherty County School System and inmate care at the Dougherty County Jail. Also, its Network of Trust worked with young people in the community, the hospital continued to focus on clinical supervision and training for nursing students, as well as pharmacy, pharmacy techs and other allied health professionals, Phoebe officials noted.

Jennifer Parks