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The CCHS board are addressing the 019.0% profit shortfall in 2023 and its possible causes and how to improve revenue challenges.
Profits from operating income was significant in 2023 in comparison to other years. CFO noted that collectible accounts receivable is improving in 2024.
DAYTON-The Columbia County Hospital District Board of Commissioners was presented with an audit report for 2023 and 2022 which reflected a critical loss in 2023 of $6.2 million during the August 28 board meeting. Both CFO Matt Minor and CEO Shane McGuire commented on the audit report and offered comparisons to the improvements in current year.
The accounting firm DZA of Spokane presented an audit report to the Board of Directors on the financial position of the district for 2023 and 2022 through examining the internal control and compliance as required by Government Auditing Standards. The findings indicated a significant deficiency in internal control though no reports of noncompliance and the financial statements were considered neutral, consistent, and clear. There were no other significant findings. Additional comments for attention were the delays in timely collections of accounts receivable and to be categorized by payor category such as Medicare, Medicaid and private. These should be adjusted at year end.
The auditor reported the revenues were not increasing as fast the expenses. The greatest expense is for salaries and benefits which is expected of a service organization, discussion indicated. The operating loss for 2023 was $6.2 million compared to $2 million the previous year. They noted this as a significant increase which is not sustainable for operating where operating at least at break-even is recommended. They also pointed out the expense of loan interest.
The days cash on hand which is how many days the district could continue to operate if they stopped bringing in revenue went from 37 in 2022 to 26 in 2023. The auditor pointed out that the recommended days cash on hand is between 60-90 days.
CFO Matt Minor reported for July of this year that the days cash on hand is similar at 24 days. He also noted that collectible accounts receivable is improving at around 61 days, however accounts payable is longer at about 81 days including for the line of credit with the Bank of Idaho which was $1.16 at the end of 2023 of $1.2 million limit and the current balance is due next month or will be renewed.
"Twenty-three was a tough year. Twenty-three is behind us," commented Chairman Bob Hutchens on the report.
McGuire added his remarks. "What makes 2024 different...you have other metrics that are telling us maybe there's still something not well – days cash on hand, your accounts payable, for example, was brought up. The team has been working really hard to say, 'These are the reasons why – these are some metrics we can track that lead us to believe that '24 is performing much better than '23.'" "That's good news," Hutchens responded.
The board tabled the executive session that was scheduled for the performance review of McGuire until the September 25 meeting.
