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2003-Q2 |
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About Fletcher Allen > Financial Information > 2003-Q2 |
Immediate (May 6, 2003)
Maria McClellan
Fletcher Allen Public Affairs
(802) 847-2886
Fletcher Allen Releases Second Quarter Financial Results
BURLNGTON VT -- Fletcher Allen has released financial results for the second quarter (January-March) of fiscal year 2003. Fletcher Allen made its quarterly financials public for the first time when it released the first quarter results for this fiscal year on February 7, 2003.
The institution fell below its budgeted expectations for the second straight quarter. The organization lost $3.5 million in operations for the quarter, for a total of $8.4 million in operations for the first six months of the fiscal year. As in the first quarter, a combination of cost and reimbursement issues was compounded by longer than projected lengths of stay for patients in the hospital. The operational loss was accompanied by below-budget results in the non-operating income area, which includes revenue from affiliates and investments, for a combined loss of $8.7 million for the quarter and $12.3 million for the first 6 months.
Key measures of volume for the quarter were mixed. Total inpatient discharges were below budget by 531 (9.8%) and less than last year by 75. Patient days (a measure of the number of patients in the hospital each day) were under budget by 1,728 days (5.4%), and under last year by 675. The average length of stay was greater than budget by 8.1%, but was approaching the budgeted figure by the end of the quarter. Physician office visits were under budget by 7.8%. For the quarter, volumes were under budget. Financially, the operating results reflected the same pattern.
"This fiscal year is critical to our future financial health, as was indicated in the recent debt capacity study conducted by the firm of KaufmanHall," said Ed Colodny, interim president and chief executive officer. "During the second quarter we began a thorough review of all aspects of operations and programs, and are in the midst of developing an action plan to improve our operational performance, both in terms of improvements to inpatient flow and controlling expenses.
"We must make every effort to achieve our year-end goal of attaining $4 million from operations," Colodny continued, "and do it without compromising the quality of our patient care."
