Fletcher Allen Releases Year-to-Date and Second Quarter Financial Results
Fletcher Allen has reported an operating income of $5.7 million for the first two quarters of the 2004 fiscal year. This includes an operating income of $1.8 million for the second quarter. The second quarter covers the period beginning January 1st and ending March 31, 2004. This marks nine consecutive months of operating incomes that tracked budgeted expectations.
Second Quarter Results
Operating income for the second quarter was $164,563 better than budget and $5.2 million better than the corresponding quarter in FY2003. Net operating revenues for the quarter were $144 million, $1 million above budgeted revenues. However, the organization's operating expenses for the quarter were $142.2 million, $900,000 above budget, resulting in an operating income of $1.8 million and an operating margin of 1.2% for the second quarter. By comparison, the organization lost $3.5 million in the second quarter of FY 2003.
Year-to-date Results
For the year to date, the $5.7 million net income from operations was well above
the budgeted $536,717 for the period, and produced an operating margin of 2.0%. A year
ago, the organization saw a two-quarter loss of $8.4 million. Operating expenses for the first half of the fiscal year were below budget by $2.8 million year-to-date.
Improved processes that were part of the budget recovery plan implemented in mid-FY 2003 were incorporated into the FY 2004 budget and the organization's positive financial results are, to a large extent, the product of those changes. However, expenses began to increase above budget in the second quarter.
Key volume measures year-to-date were mixed. Total inpatient discharges were above budget by 331 (3.0%). Combined Inpatient and Outpatient Days, a measure of the number of patients in the hospital each day, were 1.6% below budget, and physician office visits were 5.7% below budget, but substantially higher than last year for the same quarter. At the end of the quarter, Days Cash on Hand increased to 89.8 days, 2.9 days above the first quarter's results.
The institution began making its quarterly financials public with the release of the first quarter results for FY 2003 in February 2003. The audited financial statements for the years ended September 30, 2002 and 2003, as well as the quarterly results for FY 2003 and the first two quarters of FY 2004, are available on the Fletcher Allen Web site at www.fletcherallen.org.