Mayo Regional Hospital - Annual Report

A newsletter of health information from Mayo Regional Hospital * Annual 2006

2006 Annual Report from HAD 4
Mayo Regional Hospital grew during 2006 to become the largest employer in Piscataquis County. At the same time, Mayo reached out to forge a strategic affiliation agreement with Eastern Maine Healthcare Systems, increasing opportunities to improve the quality and safety of patient care. The state Department of Labor named Mayo as the county’s largest employer after the hospital’s workforce increased to 345 full-time equivalent positions, for a total of 455 employees when all positions are included.

The Piscataquis Chamber of Commerce recognized that growth, the impact of the hospital’s $19.7 million payroll on the area economy and Mayo’s support of community initiatives by naming Mayo Regional its Business of the Year award winner in the large business category.

Mayo’s affiliation agreement with Eastern Maine Healthcare, for a three-year term, opened the way for cooperation on multiple fronts between the two systems. Under the agreement, Mayo retains its local autonomy and governing board, and both Mayo and EMHS remain legally separate.

The year marked the successful conclusion of a joint effort between Mayo and the Town of Milo to construct the new medical office building in that community, the first occupant for the Eastern Piscataquis Business Park. Mayo financed the $657,000 cost for the 5,200-square-foot structure, and over 200 people -- including U.S. Senator Susan Collins and Congressman Mike Michaud -- attended the open house.

The hospital’s Counseling Program improved community access to mental health services by scheduling clinicians in primary care offices operated by Mayo in Corinna, Dexter, Dover-Foxcroft, Guilford and Milo. Mayo also recruited psychiatrist Richard Wallingford, M.D. to provide medication management and supportive therapy for adults over the age of 18, including geriatric patients.

Other additions to the medical staff during the year included Petr Smejkal, M.D., hospitalist; Robert Livingston, M.D., surgeon at Mayo Orthopaedics; Bryan Lundquist, M.D., a family practice physician at Milo Family Practice; and Tameem Alsamsam, M.D., anesthesiologist.

The hospital enjoyed an excellent financial performance, finishing the fiscal year with an operating gain of $1.1 million despite coping with ongoing payment shortfalls from the state Medicaid program. The average daily census was 11.4 patients, and gains were seen in operating room caseload, Emergency Department visits, physician office visits and use of most outpatient services.

Hospital Administrative District 4 Board of Directors
Abbot Heather Weymouth Atkinson Irene White Bradford Gregory Bowler, President Cambridge Evelyn Farrar Dexter Patricia Tobin, Vice President Albert Tempesta, Secretary Kathy Goerlitz Dover-Foxcroft Robert Pomeroy, Treasurer Richard Carrier Gordon MacKinney	Guilford Dolores Curtis Alvin McDonald Monson Sue DeLoia Parkman Candice Cyr Sangerville Ellen Haley Sebec Ruth Nason Willimantic Jeff Morin

Financials

Hospital Administrative District 4, d/b/a Mayo Regional Hospital

Statements of Revenues, Expenses and Changes in Net Assets

Year Ended September 30

2006 2005

Net Patient Service Revenue $32,450,538 $31,717,892

Other Operating Revenue 1,119,258 1,303,323

Total operating revenues 33,569,796 33,021,215

Operating Expenses:

Personnel Services 16,328,440 14,091,788

Employee Benefits 3,413,387 2,995,739

Purchased services 2,997,646 2,811,924

Supplies and other direct expenses 8,042,126 8,166,695

Depreciation and amortization 1,300,807 1,152,709

Total operating expenses 32,082,406 29,218,855

Operating income (loss) 1,487,390 3,802,360

Nonoperating Expenses:

Interest expense 372,073 378,407

Income before nonoperating expenses 1,115,317 3,423,953

Nonoperating revenues:

Investment income 301,696 192,462

Net increase in fair value of investments 86,907 80,798

Noncapital contributions 81,645 92,078

Total nonoperating revenues 470,248 365,338

Income before other revenues 1,585,565 3,789,291

Other revenues:

Additions to permanent endowments 13,720 3,524

Total other revenues 13,720 3,524

Increase in net assets 1,599,285 3,792,815

Net assets, beginning of year 18,523,842 14,731,027

Net assets, end of year $20,123,127 $18,523,842

2006 Key Statistics

Admissions: 1,250

Patient days: 4,179

Daily patient census: 11.4

Average length of stay: 3.3 days

Births: 154

Surgical procedures: 2,457

Radiology exams: 20,916

Laboratory tests: 116,454

Physical therapy procedures: 10,771

Cardiopulmonary treatments: 7,152

Emergency room visits: 13,151

Ambulance runs: 2,985

Physician office visits: 48,804

Full-time equivalent employees: 329

Total salaries/benefits: $19,741,827

Charity care provided: $820,598

Gross revenue by payer:
-- Medicare, 46.5%
-- Medicaid, 16.8%
-- Commercial, 31.5%
-- Private, 5.2%