Lake Health in Concord Township, Ohio, recorded a deficit of $30 million in 2015 and 2016, making it the first time the nonprofit system finished its fiscal year in the red since 2000, reports The Plain Dealer.
Lake Health President Cynthia Moore-Hardy attributed the loss to an IT conversion that exceeded anticipated costs and negatively impacted billing and collections processes, according to the article.
To revamp system finances, LakeHealth restructured its financial administration and billing department. This included hiring new finance and revenue cycle leadership and contracting with outside subject matter experts.
Ms. Moore-Hardy said the setback will not impact upcoming construction plans, which include a $30 million medical wellness center in Mentor, Ohio, and a new medical campus in Willoughby, Ohio.
"Despite the loss, LakeHealth is in a very strong financial position. Patient volumes are good, and the system has enough cash on hand," Ms. Moore-Hardy said in statement obtained by The Plain Dealer. "We have been and will continue to work diligently to correct this situation, and are confident that our financial situation will return to normal within the next couple of months."