Financial Report
In fiscal 2011, Wellmont Health System continued to improve
our financial strength and position ourselves for future growth and success in
a new healthcare era. Many of the gains realized for the year were driven by
increased volumes, in part due to the successful integration of strategically
important physician practices. Improvements in the performance of our
investments also factored into the year’s success.
Our physician organization experienced substantial growth
with the acquisitions of Cardiovascular Associates – the region’s largest and
most experienced cardiovascular practice – in May 2010 and Pulmonary Associates
of Kingsport – that city’s premier pulmonary practice – in January 2011. These
acquisitions helped increase physician office visits by 20 percent over fiscal
2010.
Hospital inpatient and observation patient volumes rose 3.9
percent. Surgical volumes increased by 2.3 percent and outpatient visits by 3
percent. However, we experienced declines in newborn deliveries of 8.1 percent
and emergency room visits of 1.9 percent.
Revenues increased $70.3 million over fiscal 2010, largely
due to volume increases. An increase in bad-debt expenses is reflected in
revenues, a result of continuing challenges presented by local economic
conditions. Also reflected in our revenue totals is a $19 million TennCare fee
assessment reimbursement. However, the initial fee is also reflected in our
expenses.
Expenses for fiscal 2011 increased $75.9 million over fiscal
2010. Contributing substantially to this increase was $39.5 million in expenses
due to acquisitions, $19 million in the TennCare fee assessment noted above, an
$8.3 million increase in supplies – primarily for surgical implants and
chemotherapy drugs – and a $6.2 million increase in salaries and benefits for
increased patient care staff and computerized provider order entry and
electronic health record implementation.
Our income from operations in fiscal 2011 was $17.2 million.
While less than fiscal 2010’s $22.8 million, improved investment income and
other nonoperating items resulted in revenues and gains exceeding expenses and
losses by $28.2 million as compared to $18.2 million the previous year. This
net income, a $42.2 million improvement in the market value of our investments
and other items, translated to a $75 million increase in net assets.
Our days cash on hand remained relatively unchanged at 153
days, and our debt service coverage improved to 2.73 times our maximum annual
debt service.
This strong financial position provides the resources we
need to continue investing in the technologies and infrastructure our patients,
physicians and employees expect and deserve.
Audited Financials
Request a 990
To request a copy of Wellmont Health System's most recent 990 returns, please submit a 990 return request form. There will be a fee for copying and mailing the document.
Related Links