Boca Hospital finances improving; CEO sees profit by end of fiscal year
BOCA RATON — Indicative of the continued strengthening of its financial position, officials at Boca Raton Community Hospital have announced that for the quarter ending March 31, 2010, the hospital recorded net income of $3.03 million — a $3.02 million improvement over the prior year’s third quarter, which showed income of just $9,000. Operating revenue for the time period was $92.4 million.
Importantly, operating income was $3.0 million versus a third quarter loss of $929,000 in the previous fiscal year.
“We continue to make significant strides in securing the financial foundation of our hospital,” said Jerry Fedele, president and CEO of Boca Raton Community Hospital. “It is extremely gratifying to see this progress stem from operational performance, which is critically important to our long-term growth and vitality.”
For the first three quarters of its current fiscal year, BRCH recorded a net loss of $1.6 million, which was $7.9 million favorable to the loss of $9.5 million in the same time period during fiscal year 2009.
“Our trending is very positive,” said Fedele. “I remain quite optimistic that we will be profitable at the end of the fiscal year.”
In addition to its operating profit, Fedele cited a number of significant developments contributing to the hospital’s success.
Operating EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was $21.8 million for the first nine months of the fiscal year, an improvement of $4.8 million from the same period of the prior year.
The hospital’s oncology program has reported net income of $2.3 million for the first nine months of the fiscal year and is seeing more than 2,700 new patients annually.
Operating expenses were reduced by $4.2 million for the nine-month period as a result of management’s continued emphasis on efficiency.
“While we have reduced expenses, we have not compromised our quality of care,” Fedele emphasized. “I’m most proud of the efficient manner in which we are providing high quality care and service.”
The Hospital’s Institute for Women’s Health and Wellness continues to perform over 90,000 procedures a year and has done more Positron Emission Mammograms (PEM) than any other center in the nation.
In March of this year, BRCH acquired its sixth imaging center and continues as the region’s leader in providing convenient access to the most sophisticated imaging technology available.
In its most recent analysis, Fitch Ratings affirmed the hospital’s investment grade bond rating and upgraded its outlook from negative to stable.
For the sixth consecutive year, BRCH was designated as a Distinguished Hospital for Clinical Excellence by HealthGrades, placing it in the top 5 percent of hospitals in the nation. Concurrently, HealthGrades ranked Boca Raton Community Hospital as number one for cardiac surgery in the state of Florida, number two for the treatment of stroke, number three for overall cardiac services and number one for gastrointestinal medical care. The hospital has also received the 2010/2011 HealthGrades Women’s Health Excellence award.
Fedele noted that just 18 months ago, faced with losses of $120 million and a myriad of programmatic and operational difficulties, many questioned if the hospital could survive.
“Now, by every indicator – be it financial, quality of care or depth of services – Boca Raton Community Hospital is demonstrating material success,” noted Fedele. “Through the remarkable efforts of our physicians, nurses, support staff, volunteers and philanthropists, we are shaping one of the most dramatic turnarounds ever seen in the healthcare industry.”
