Kevin Kilday
Chief Financial Officer Anna Jaques Hospital |
LETTER FROM THE CHIEF FINANCIAL OFFICER
I am pleased to report that Anna Jaques Hospital and Affiliates ended Fiscal Year 2018 with a gain from operations of $10,000. This represents a financial performance greater than $1,100,000 ahead of budgeted expectation. This is a significant improvement from the prior fiscal year which had a consolidated operating loss of ($578,000). Financial performance for FY18 now represents a consolidated view of our operation, rather than focusing exclusively on the hospital.
Unwarranted provider price variation, workforce recruitment and retention, and pharmaceutical cost increases far outpacing medical inflation continued to challenge Anna Jaques Hospital and Affiliates this year. In spite of these historical and ongoing challenges, the Anna Jaques Hospital and Affiliates outperformed budgeted expectations. |
Volume and Revenue Growth
Total operating revenue grew 3.2% or $4,600,000 over prior year. Total hospital discharges grew 3.3% over fiscal year 2017. Hospital outpatient activity grew by 3.4% compared to prior year led by growth in our Oncology service, Pain program and Endoscopy service. Physician services with Seacoast Affiliated Group Practice grew at a rate of 5.8%. Philanthropic activity with the Anna Jaques Community Health Foundation set new records in fiscal year 2018. Total fundraising activity exceeded $2,300,000 compared to $1,570,000 in the prior year.
Strategic Investments
The opening of the Haverhill Medical Office Building in October of 2017 was a significant event for Anna Jaques Hospital. The Haverhill market was identified as an area of focus for expansion. Patient activity in the greater Haverhill market (Haverhill and adjacent towns) increased 9.2% in fiscal year 2018 as compared to fiscal year 2017.
Anna Jaques Hospital continued to invest in medical equipment and technology, as well as campus infrastructure. We finished the Birth Center Room renovations. We replaced all of the hospital’s intravenous infusion pumps. We acquired additional functionality in robotically assisted orthopedic joint replacement surgery. We purchased a new hyperbaric chamber for our Wound Care Center. Additional investments were also made in the laboratory and Intensive Care Unit. The hospital invested $1 million dollars in the reconstruction of the campus parking lots, in addition to almost $500,000 in other facility-related infrastructure upgrades.
Anna Jaques Community Health Foundation
The Community Health Foundation had a historic year raising over $2,300,000 in cash. This is an increase of almost 40% compared to FY 2017 fund raising activity. Several extraordinary gifts from community donors and former employees contributed to the increase. The generosity and support of our community allows the hospital to continue to make critical investments in clinical programs and capital equipment.
Anna Jaques Hospital and Affiliates ended fiscal year 2018 with a positive operating margin. We continue to exhibit growth in key volume indicators. Our financial performance puts us comfortably ahead of our debt covenants. Challenges remain in our future as cost pressures on the entire healthcare delivery system continue. We believe that the Anna Jaques Hospital and its Affiliates will continue to be a high quality, high value provider, and that the efficiencies we have identified in the past position us well into the future.
Total operating revenue grew 3.2% or $4,600,000 over prior year. Total hospital discharges grew 3.3% over fiscal year 2017. Hospital outpatient activity grew by 3.4% compared to prior year led by growth in our Oncology service, Pain program and Endoscopy service. Physician services with Seacoast Affiliated Group Practice grew at a rate of 5.8%. Philanthropic activity with the Anna Jaques Community Health Foundation set new records in fiscal year 2018. Total fundraising activity exceeded $2,300,000 compared to $1,570,000 in the prior year.
Strategic Investments
The opening of the Haverhill Medical Office Building in October of 2017 was a significant event for Anna Jaques Hospital. The Haverhill market was identified as an area of focus for expansion. Patient activity in the greater Haverhill market (Haverhill and adjacent towns) increased 9.2% in fiscal year 2018 as compared to fiscal year 2017.
Anna Jaques Hospital continued to invest in medical equipment and technology, as well as campus infrastructure. We finished the Birth Center Room renovations. We replaced all of the hospital’s intravenous infusion pumps. We acquired additional functionality in robotically assisted orthopedic joint replacement surgery. We purchased a new hyperbaric chamber for our Wound Care Center. Additional investments were also made in the laboratory and Intensive Care Unit. The hospital invested $1 million dollars in the reconstruction of the campus parking lots, in addition to almost $500,000 in other facility-related infrastructure upgrades.
Anna Jaques Community Health Foundation
The Community Health Foundation had a historic year raising over $2,300,000 in cash. This is an increase of almost 40% compared to FY 2017 fund raising activity. Several extraordinary gifts from community donors and former employees contributed to the increase. The generosity and support of our community allows the hospital to continue to make critical investments in clinical programs and capital equipment.
Anna Jaques Hospital and Affiliates ended fiscal year 2018 with a positive operating margin. We continue to exhibit growth in key volume indicators. Our financial performance puts us comfortably ahead of our debt covenants. Challenges remain in our future as cost pressures on the entire healthcare delivery system continue. We believe that the Anna Jaques Hospital and its Affiliates will continue to be a high quality, high value provider, and that the efficiencies we have identified in the past position us well into the future.
Kevin Kilday, Chief Financial Officer
Anna Jaques Hospital
Looking back 50 years at hospital financials as reported in the
1968 AJH Annual Report as compared to today:
