PLATTSBURGH — CVPH Medical Center suffered $5,157,507 in operating losses in 2012, fueled by cuts in Medicare and other federal reimbursements, along with a reduction in inpatient numbers.
Hospital officials acknowledged that 2012 was a difficult year but offered hope for the future, especially with the new affiliation with Fletcher Allen Health Care in Burlington.
CVPH President and Chief Financial Officer Stephens Mundy presented the figures during the annual meeting of the CVPH Advisory Board, held Tuesday afternoon at Clinton Community College’s Stafford Building Theater.
“(It) was a year of challenges,” he said of 2012. “We responded well and are still responding. Changes are continuing.”
Medicare cuts took the largest chunk from the hospital’s budget, with $2 million lost in reimbursements.
Another $1.5 million loss came from a new federal program that requires hospitals to identify patients they admit overnight as “observation” patients rather than admissions.
Hospitals cannot resubmit claims for those patients but have to absorb the loss, Mundy explained.
Another $1 million was lost in changes to the federal coding system.
“Without those (three areas), we would have been close to a break-even year,” Mundy said.
CVPH did record $3.2 million in non-operating gains, mostly from investment income, which reduced the net loss to $1.9 million
By comparison, CVPH experienced operating gains of more than $7.9 million in 2010 and $7.4 million in 2011.
The hospital recorded a slight increase in the number of physicians on staff, jumping from 158 doctors in 2011 to 162 by the end of 2012.
However, Mundy did note that losses of general surgeons had a negative impact on the volume of surgical procedures.
Mundy praised regional efforts with the Medical Home concept of providing consistent care for patients throughout the community, although he noted the change in health care it creates reduced patient numbers in such areas as the Emergency Department and hospital readmissions.