Ongoing conversations about a new medical facility from Stormont Vail and its potential impact on Newman Regional Health come as the local county-owned hospital is enjoying solid financial numbers.
Newman Regional’s September net income was almost $39,000, ahead of September 2023 by almost $400,000 — although behind budgeted projections by about $140,000. Year-to-date income is over $312,000, which is ahead of budget by $13,000 and last September by almost $780,000.
Chief Executive Officer Cathy Pimple says the September numbers were driven by inpatient revenue, which was nearly 20 percent over budget, and so-called other operating revenue, which was almost 60 percent over budget. Pimple also says the trend in financial strength now dates back to spring 2023.
Pimple also expects inpatient volume to increase over the winter months. There was a small uptick in outpatient care for respiratory illnesses this past summer into early fall.
Not all the recent budget figures were strong. Other patient revenue was 5.4 percent under budget for September due to fewer clinic visits than expected. Operating expenses were unfavorable to budget by 4 percent and non-operating revenue was unfavorable to budget by almost 70 percent.
Newman Regional Health and Stormont Vail have been discussing the future of a Stormont facility near Roads 180 and G for months after Stormont purchased property near that intersection this past spring. The conversation actually dates back to August 2023, if not sooner, as Stormont mentioned plans for a standalone space for its Cotton O’Neil Clinic. The two sides have negotiated a two-year extension so Cotton O’Neil can stay in its current space through February 2029 if needed, but Stormont “remains resolute” in its plans for its own local facility, according to Newman Regional Chief Executive Officer Cathy Pimple, and Newman Regional has repeatedly mentioned significant concerns about financial impact if the Stormont facility duplicates certain services already in place at Newman Regional Health.
