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Phoebe's total assets at $589 million

ALBANY, Ga. -- The Phoebe Putney Memorial Hospital board approved Wednesday its audited financial statements for the past fiscal year.

The statements, which were presented by Lin Harris of Draffin & Tucker at a hospital finance committee meeting just hours before the board meeting, showed that Phoebe's total assets were at $589 million for the fiscal year that ended July 31, 2010.

Net days in accounts receivable, the average time that receivable are outstanding or the average collection period, was at 46 days in 2010 -- which is below the 49-day mark from 2009. Total liabilities were at $390 million, more than $130 million over the 2009 figure.

Long-term debt to capitalization, the proportion of long-term debt to the sum of long-term debt and net assets, was at 52 percent.

This is a number officials would expect to change as some of the hospital's debt is paid off. "As the debt is paid, it is ensured that (the numbers) will go down," Harris said.

The debt service coverage ratio, which provides a measure of total debt service from a corporation's cash flow, was at 5.7 in 2010. The national ratio and Phoebe's 2009 ratio were 3.9 and 5.3, respectively.

The hospital's net worth was $199 million, up from $185 million in 2009. Excess revenues over expenses were $23,469 in 2010 and $19,507 the year before.

The total margin, which reflects profits from operations and non-operations, was 4.8 percent. The desired level is above median values, which is .4 percent on the national level.

The most recent financial statements, which have been posted on the hospital's website, indicate that Phoebe invested $113.5 million in community benefits and reinvested almost $40 million in equipment, facilities and property during Fiscal Year 2010.

The audit showed a $1 million increase in unreimbursed care over last year. Charity care and indigent care were at $19.7 million, and community expenditures also included $2.2 million for community building activities, $900,000 for health education programs, $1.4 million for school nurses and $1.1 million for Dougherty County inmate care.

The audit also showed excess of revenue over expenses of $23.4 million for the year.

Officials have said that declining reimbursements continue to challenge the health care environment. Medicare reimbursements have not increased and Medicaid currently pays approximately 85 percent of costs for outpatient services -- which makes the concept of expense control even more important.

"With Medicaid and Medicare, there is a flat rate that is paid," said Joe Austin, chief operating officer of the Phoebe Putney Health System.

More than $40 million was reinvested in property, facilities and equipment -- including $22.7 million for the construction of Medical Tower II, $3.8 million in patient room renovations, $1.4 million for the Family Tree expansion, $10.1 million for the building of Willson Hospice House, $2.2 million for the purchase of medication cabinets and $1.6 million for the recent purchase of the da Vinci surgical robot.

The audit is not reflective of the acquisition of Palmyra Medical Center, which should be reflected in next year's numbers.