“Another small margin for March – about 50,000.”

These are words used by Steve Andrews, Vice-President of Finance for Three Rivers Health, in reviewing March financial statements during the April meeting of the Three Rivers Health Authority Board Thursday morning (April 30th).

For the first time in a number of months, Three Rivers Health finished in the black in February and that was the color of the bottom line for March as well – but barely.  The “Summary of Financial Performance” for the month shows operating income of just over $52,000 ($52,004) and net income of just under $58,000 ($57,728), which was $22,520 above budget.  Year-to-date, net income was just under $36,000 ($35,939), which was more than $193,000 ($193,501) above budget.

Although the positive bottom line is a welcome change from the $3.2 million loss recorded in 2008, Andrews said that, “For the most part, the reason you’re seeing at least some small margin, it really has nothing to do with the revenue piece at all.  It’s really from the cost cuts that we’ve made.”  And, he added, “We really need to focus on our services and generate more revenues.”

Andrews noted that admissions through March are down from a year ago “and that continues in April.  On the outpatient side, ER, x-ray, surgery and urgent care are all less than first quarter last year and that is expected to continue again in April.”  And, he said, “April is shaping up to be lower than March, probably about a million dollars less in revenue for the month of April.”

Helping to offset the decline in revenues is a reduction in labor costs, reflecting the trimming of the workforce during the past year.

Matt Chambers, President & CEO, reinforced Andrews comments as he said, “You need to be focused on the revenue side.  That’s the kind of thing we need to focus on.”