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Sharon Hospital net income is down by more than $1 million

SHARON — According to their annual report released last week, Sharon Hospital suffered a large loss in net income for fiscal 2008.

The hospital made $252,933 in net income for fiscal 2008, which is $1,481,496 less than the $1,734,429 it made in fiscal 2007. Meanwhile, according to the report, total expenses for patient care have gone up to $51,833,285 in fiscal 2008, a $5,851,514 increase from fiscal 2007.

Also increased from the previous fiscal year is the total amount of money the hospital has billed, but has not yet been paid. In fiscal 2008, the hospital reported it had billed but not received $63,007,809, a $4,775,554 increase from fiscal 2007. The number includes increases in bad debt, charity cases and a lack of payments from commercial or governmental insurance contracts.

When asked why the hospital suffered a substantial loss of net income in fiscal 2008, Jill Musselman, director of marketing and public relations for Sharon Hospital, said in an e-mail that patient volume was up, and while this generated more revenue, it also generated an increase in related expenses.

“As we have more patients, we need more labor and supplies,� Musselman wrote. “The other expenses (wages and benefits) and supplies went up by 8 percent, most of which relates to our increase in volumes.�

The highest increase in patient care is listed as supplies and services for $20,712,398, an increase of $1,797,814 from the previous fiscal year.

The hospital report lists a decrease in inpatient admissions from 2007 to 2008: 2,586 patients during fiscal 2008, a decrease of 21 patients from fiscal 2007. The report, however, lists an increase of 359 in emergency room visits and of 132 in surgical procedures conducted by the hospital.

Total patient days increased by 241, and the average length of all acute-care patient stays increased slightly (3.58 days to 3.66 days). The billing for inpatient services increased by $3,088,571 and the outpatient services increase in billing was $5,527,076.

When asked if the loss in net income would mean a reduction of staff or programs at the hospital, Musselman wrote in her e-mail that the hospital had no plans for any reduction.

“We continue to manage expenses carefully as every business is doing in these uncertain economic times,� Musselman wrote.

Cost-cutting measures have been made this year already at the hospital. The April 9 Lakeville Journal reported that CEO Charles Therrien held a series of meetings with staffers about ways to cut costs. Hospital employees came up with ideas in the areas of energy conservation, eliminating waste and increasing efficiency, and members of one department helping out in other areas if necessary.

They also suggested that the annual employee gift be skipped this year, and indicated willingness to accept a wage freeze, as well as eliminating some differential pay for certain shifts and positions, and recruitment or referral bonuses.  There are no layoffs planned, Therrien said.

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