Magnolia (Ark.) Regional Medical Center reported increased gross revenue for fiscal year 2017, but the nonprofit, city-owned facility's profits continue to be hit by contractual adjustments, according to the Banner-News.
MRMC posted actual gross revenue of $50.3 million for the fiscal year ended Sept. 30, compared to $48.8 million in the year prior, preliminary income data show. But the medical center ended fiscal year 2017 with an operating loss of $3.3 million compared to an operating loss of $2.8 million in fiscal year 2016.
MRMC partially attributed the widened operating loss to growth in average contractual adjustments — medical expenses the hospital can't bill to the patient per payer agreements. Contractual adjustments were 59.9 percent for fiscal year 2017 compared to 57.8 percent in fiscal year 2016. In September, contractual adjustments were 61.7 percent, and that included a year-end adjustment for home health, says Roxane Stewart, CFO of MRMC.
She says the increase was primarily in Medicare and Medicaid adjustments, and the medical center also incurred a 28 percent decrease in its net Medicaid upper payment limit.
In light of increased contract adjustments, the medical center is making efforts to achieve maximum reimbursement moving forward.
"MRMC will continue to strive to provide the quality patient care in our community although faced with declining reimbursements for our services," says Ms. Stewart. "We are focusing on our managed care contracts and denials management to ensure that we are being reimbursed the maximum possible."
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