PORT ANGELES — Cash on hand continued a downward trend in Olympic Medical Center’s financial report for August.
Net revenue, while still showing an operating loss, has a larger net income margin than in 2023.
Lorraine Cannon, Olympic Medical Center (OMC) chief financial officer, told board members on Wednesday that cash on hand had shrunk to 30 days by the end of August. That is a loss of five days from the end of the second quarter and a loss of 27 days compared with the end of 2023.
“Is it where we want to be? No,” Cannon said. “I never thought we were going to hit 30. I thought 40 was the lowest we were going to do.”
Some reasons for the decrease include a recent $2.7 million settlement, a Medicare billing issue that resulted in a delay of about $1.25 million in revenue and an increase in insurance claims that are initially denied.
“They’re saying no just because they can,” Cannon said of insurance companies.
Cannon said she was hopeful that cash on hand won’t continue with its downward trend.
“We’re not going to get a $2.7 million settlement every month,” she added.
Other than losing cash-on-hand days, OMC also lost $550,000 during the month of August. However, it was less than the $827,000 that the budget predicted would be lost.
The total revenue for August was $23.823 million while operating expenses were $24.372 million.
The biggest factors contributing to August’s loss were litigation fees and locum payments, Cannon said. Currently, the hospital has 11 locums.
Overall, the year-to-date net income margin is at negative 4.7 percent. Last year’s margin was negative 10.9 percent.
“We’ve made progress,” Cannon said of the trend. “Is it as pretty as I was hoping it was going to be? No. But we’ve made incredible progress in one year.”
If the year-to-date margin had remained at negative 10.9, Cannon said the hospital would have seen an additional $10.5 million loss.
During the work session, commissioners also heard from Priya Jayadev, the executive director of Volunteer Hospice of Clallam County (VHOCC).
Jayadev explained VHOCC’s approach to palliative care, emphasizing the fact that VHOCC never bills any patients and instead runs on private donations and grants.
For its relationship with OMC, Jayadev said the referral process could be streamlined, and each organization could work to maintain confidence in associated medical staff.
“Having a program like this in our community is a diamond,” board president Thom Hightower said.
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Reporter Emma Maple can be reached by email at emma.maple@peninsuladaily news.com.
