Annual report update: 2002-2003 Washburne Court •On Jan. 2, 2003, began operating as an assisted living facility. •Renovations began Feb. 23 to convert from a 46-bed facility to a 24-unit facility. •Has been at full census (24 to 28, depending on if couples reside in the two-room units) since the end of 2003. •Only two discharges occurred in 2003, and both openings filled immediately. •No staff turnover in 2003. Paynesville Area Home Health •Offices moved to Washburne Court at 211 Washburne Ave., Paynesville. •Formed partnership with Lake Region Home Care of New London after St. Cloud Hospital, Stearns County, and Augustana Home Care discontinued home health services in the Paynesville area. Clinics •All clinics open Monday-Friday from 8 a.m. to 5 p.m. •All clinics now offer a male and female provider to meet the needs of all patients. •Recruited and hired Jennifer Dean-Dwyer, P.A. •In 2003, we held open houses at each clinic location from May through September and the number of new patients in those months was 254. •Began performing ear piercing, ICG testing used to measure heart function, and the Vasclip procedure for vasectomies. •Heart failure clinic available through Dr. Randy Zimmerman. Miscellaneous •Began performing knee replacement surgery in 2003. •PAHCS now has 50 specialists and 14 active medical staff available to see patients. Financials PAHCS had a loss from operations in fiscal year 2003 of $446,182. A number of factors contributed to this loss. The renovation of Washburne Court and Koronis Manor resulted in reduced occupancy and reduced revenue during the renovation and several months that followed. In addition, increases in allowances and contractual adjustments contributed to the negative financial results. Write-offs to Medicare increased 17 percent, or $1,519,227 during th year, and write-offs to Medicaid increased 25 percent, or $242,795. The recent $8.2 million expansion, renovation at the main campus, and the purchase of Hilltop Care Center has increased PAHCS's debt load considerably. At the end of 2003, the district had total long-term debt of $12,709,461. This also resulted in increased depreciation and interest expenses of $435,570 in 2003. PAHCS is taking several steps to improve its financial position for 2004 and beyond: •In November 2003, PAHSCS Initiated a reduction in force. This resulted in a reduction of expense of $550,000 on an annual basis. •PAHCS has successfully transitioned to a Critical Access Hospital effective Dec. 2, 2003. This will improve the district's reimbursement from Medicare and Medicaid, projected to be $1.4 million on an annual basis. •We are in the process of refinancing the long-term debt. Current annual principal and interest payments are $1.9 million; by extending the terms of the debt and obtaining a lower interest rate, total principal and interest payments are expected to be $1.4 million on an annual basis. The completion date for refinancing is targeted for March 2004. By taking the proceeding actions, PAHCS management believes the financial situation will significantly improve in 2004. Key statistics for fiscal year 2002-03 •409 Total employees •19,206 Total outpatient visits •112 Number of babies born •98,676 Total laboratory tests •12,000 Total therapy visits •31,970 Total clinic visits •668 total inpatient admissions •19,700 Total radiology tests •$12.6 million total payroll and benefits. 2004 Outlook 2004 bought many challenges to the forefront. Having put some of these challenges behind us, we look forward to 2004 with great optimism. our focus for 2004 will include: •Implementation of Critical Access •Debt consolidation •Development of heart failure clinic •Increased clinic hours •Development of stronger specialty services; i.e. knee replacements •Improved and integrated information system •Improved financial reporting •Development of electronic medical records •Upgrade hardware and software •Identify and develop a cohesive customer service program at all levels in the organization •In keeping with PAHCS Mission, provide health care in a quality-conscious, caring environment. Return to Newsletter