Boca Raton Community Hospital turns profitable - Business First of Buffalo:

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BRCH Corp. earned $8,434 on revenue of $96 million in its fiscalk third quarter endedMarch 31, improved from a $20.9o million loss on revenue of $92.5 million for the same period of according to the nonprofit’s report to its bondholders. The turnaroundf happened quickly for a health care providere in the midst ofa recession. The hospital’s boarde hired Jerry Fedele as CEO in Octobefr ashis employer, Brentwood, Tenn.-based , workedd on a consulting deal with the hospital to improve its Fedele immediately embarked on an expense reduction plan that included laying off 38 employees and renegotiating contracts.
Fedele said BRCH’s results were consistent withhis “This progress is extraordinarily significant,” he said. “Therde is no question about our long-terjm success at this hospital.” BRCH’s operating expenses of $84.9 million in its fiscal third quarterwere $13.43 million less than the year-ago quarter. Thoses savings more than covered the restructurinf fees the hospital paid totheir cost-savingf consultants FTI and of $1.4 million and $3.2 respectively, during the quarter. Even as it reducecd expenses, the hospital attracted more patientxs and was more efficient in collectingbills – the area Stockam focused on.
However, its number of surgeries BRCH’s income also include a $4.7 million gain on its investments. For its next step to reduc e costs, the hospital’s executives are negotiating for more favorables contracts with managed care plans and its oncologh and infusion therapyphysician group. Yet, it returnes to hiring in some The hospital is lookinvg into developing an employed primary care physiciah network by the early part of fiscalkyear 2010, which starts in July. Fedeled said its Boca Care network would employ 25 to 30 primaruycare physicians, plus support staff, within three yearse in offices in the Boca Raton The first office should open this summef with four to six he said.
Fedele said the hospitapl is opening this officebecause there’s a shortage of primart care physicians and there aren’t any privatd primary care physicians referring patients to the hospitall in that part of town. A locatio n has not been finalized. In another the hospital will spend $1 millionh to buy an electronic medical recordes system for itsemergency room. Fedele said BRCH wouldf still report a loss for the 12 monthas endedJune 30, but it shouldx be significantly less than the loss reportex for the previous year. For the nine-monthb period ended March 31, BRCH lost $9.5 millionn on revenue of $259.3 improved from a loss of $44.3 million on revenu e of $254.
4 million in the same periodf ayear ago. “It’s not done Fedele said. “The whole story isn’t basef on one quarter.”