Much of the Newman Regional Health monthly Board of Trustees meeting Wednesday dealt with finances.
For the monthly financial report, the hospital noted a negative net income of almost $123,000, unfavorable to budget by over $1 million, in large part due to the timing of Newman Regional’s purchase of the longstanding CrossWinds Counseling and Wellness administrative office at 1000 Lincoln, as well as general operating expenses and other patient revenue. Year-to-date, net income is just under $30,000, unfavorable to budget by about $45,000 but favorable to the 2023 income by almost $390,000.
The monthly figures took a back seat to current projections about the financial impact of a new medical facility at Roads 180 and G through Stormont-Vail. Chief Executive Officer Cathy Pimple spent time discussing what is called Certificate of Need, which offer guardrails and guidance for hospitals in other states — not Kansas — seeking to add services in other markets, specifically when it comes to patient use for items like CTs, MRIs or surgeries per operating rooms in rural areas. Chief Financial Officer Holly French, who says the negative impacts to Newman Regional’s bottom line could be over $2 million if imaging is duplicated and up to $8 million per year if surgery is included, says data from Michigan could support Newman Regional’s zoning code text change package publicized last year as a way for the hospital to protect its financial interests.
Executive Director of Strategy and Development Steven Bazan says Newman Regional has no plans to revise its proposed zoning code text changes announced last fall as a way to minimize the financial losses from a Stormont facility and thus reflect its desired patient numbers for the proposed building.
Cocking says the city has concerns about the legality of Newman Regional Health’s zoning proposal, but he also says Stormont and other external medical providers could “do whatever they want” if the city approves the Newman Regional proposal and then loses what could well be a lengthy court battle.
Cocking has announced Sept. 13 as a deadline for an agreement between the two hospitals. That is significant because Cocking has said Emporia city commissioners expect an annexation request from Stormont-Vail soon — and if there is no agreement in hand or ongoing meaningful conversations between the two hospitals, the city will begin considering Stormont’s request on its own merits.
Board members also approved a nearly $160,000 boiler project.
