Fairfield Ledger
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Neighbors Growing Together | Oct 30, 2014

Health center revenue climbs

By VICKI TILLIS | Nov 05, 2013

Jim Hingtgen of Denman & Company in West Des Moines presented the Jefferson County Health Center annual audit report for fiscal year 2013, during the monthly meeting of the board of trustees Oct. 28.

“You had a very good last two years,” Hingtgen said.

The health center had a 15 percent increase in its gross revenue up from $34.4 million in FY 2012 to $39.4 million in FY 2013.

Hingtgen said the greatest part of the health center’s revenue comes from patient services. The net patient service revenue increased 11 percent from $22.2 million in FY 2012 to $24.7 million in FY 2013.

A breakdown of the 2013 patient service payor mix shows: Medicare paid 55 percent; commercial insurance paid 35 percent; Medicaid paid 9 percent; and patients themselves paid 1 percent.

The health center had total expenses of $27.1 million, an 11 percent increase from $24.4 million the year before.

Hingtgen told the trustees the health center is providing more services, so an increase in expenses is expected.

Part of the increased expenses was due to salaries. Salaries increased by 7 percent from $8.1 million in the prior year to $8.6 million in FY 2013. Hingtgen said the increase was expected because the health center created more jobs to cover its increased services.

The health center’s total assets increased from $55.2 million in the prior year to $59.6 million in FY 2013. Hingtgen pointed out the property and equipment assets increased because of the new addition on the north end of the clinic building.

The health center’s liabilities and net position totals stood at $59.8 million for FY 2013 compared to $55.2 million for the year before.

The health center’s long-term debt decreased by $710,000 from the prior year, and Hingtgen said it would continue to go down as long as the health center makes payments on its current debt and does not incur any new debt. He added being able to pay for the new addition construction with cash is a good situation to be in.

The audit findings showed the health center spent more than it had budgeted in FY 2013. The auditing firm recommended, should this occur in the future, the trustees amend the budget.

Hingtgen added Denman & Company had no difficulties working with the health center’s financial personnel while performing the audit.

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