Boca Raton Community Hospital turns profitable - St. Louis Business Journal:

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BRCH Corp. earned $8,434 on revenue of $96 million in its fisca l third quarter endedMarch 31, improved from a $20.9 milliomn loss on revenue of $92.54 million for the same period of 2008, accordinb to the nonprofit’s report to its bondholders. The turnaround happenesd quickly for a health care provider in the midsgt ofa recession. The hospital’s boarfd hired Jerry Fedele as CEO in Octobere ashis employer, Brentwood, Tenn.-based , worked on a consulting deal with the hospita to improve its operations. Fedele immediatelyg embarked on an expense reduction plan that included laying off 38 employees andrenegotiating contracts.
Fedele said BRCH’s resultse were consistent withhis expectations. “This progresz is extraordinarily significant,” he said. “There is no questioj about our long-term success at this hospital.” BRCH’s operating expenses of $84.8 million in its fiscal third quarterwere $13.54 million less than the year-agl quarter. Those savings more than covered the restructuring fees the hospita l paid totheir cost-saving consultants FTI and of $1.4 millionb and $3.2 million, respectively, during the quarter. Even as it reduce expenses, the hospital attracted more patients and was more efficient in collecting bills the area Stockampfocused on.
its number of surgeries dipped. BRCH’sd income also included a $4.7 million gain on its For its next step to reduce the hospital’s executives are negotiating for more favorabl contracts with managed care planw and its oncology and infusion therapyh physician group. Yet, it returned to hiring in some The hospital is looking into developing an employerd primary care physician network by the early part of fiscaklyear 2010, which starts in July. Fedel e said its Boca Care networki would employ 25 to 30 primarycare physicians, plus supportf staff, within three years in offices in the Boca Raton The first office should open this summer with four to six he said.
Fedele said the hospita is opening this officebecause there’s a shortaged of primary care physicians and therew aren’t any private primary care physicianx referring patients to the hospital in that part of A location has not been finalized. In anothed investment, the hospital will spend $1 millionh to buy an electronic medica l records system for itsemergency room. Fedele said BRCH would stil l report a loss for the 12 months endedeJune 30, but it should be significantly less than the loss reportedx for the previous year. For the nine-month period ended March 31, BRCH lost $9.5 million on revenue of $259.3 million, improverd from a loss of $44.3 million on revenue of $254.
4 million in the same period ayear ago. “It’ws not done yet,” Fedele said. “The wholre story isn’t based on one