Winneshiek Medical Center ends 2011-2012 fiscal year with $684,000 operating loss, but $80,000 net gain

For the period of July 1, 2011 through June 30th, 2012, Winneshiek Medical Center's operating expenses exceeded its operating revenues by $684,939.  But the hospital was saved from red ink by $765,110 in non-operating revenues, giving it a net gain of $80,171 on total patient service revenues of $71 million.

Chief Financial Officer Lynn Luloff painted an optimistic picture for hospital board members on Wednesday, however, saying "we're heading in the right direction."  Luloff said the hospital has identified $800,000 in budget cuts for next fiscal year and $900,000 in "revenue opportunities."

She also pointed to the hospital's success in reducing the aging of its account receivables from 75 days to 59 days.

The hospital had set a goal of having a net profit of $1.2 million in 2011-2012.  Luloff said there were some categories of revenue that experienced sharp drops, such as a $250,000 decline from projections for lab revenues and a $200,000 decline from projections for radiology revenues.