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Phoebe approves financial reports

ALBANY, Ga. -- The Finance Committee for Phoebe Putney Memorial Hospital recommended for approval Wednesday the hospital's most recent Form 990.

The form covers the tax year from August 2010 through July 2011 and is a total of 93 pages in length. The hospital board approved the document later that day, ahead of the March 15 deadline to file it.

The form shows the hospital had $637.8 million in total assets at the end of the fiscal year, compared to $589.4 million at the beginning of the year. At the same time, Phoebe had $420.7 million in total liabilities by July 2011 after having had $390.1 million at the beginning of the fiscal year.

Meanwhile, the hospital had $505.3 million in total revenue compared to $490.2 million the previous year.

The form also includes information on financial assistance, community benefits -- including indigent care -- donations, research, bad debt and bonds.

The 990 states that Phoebe received slightly more than $1 million in total financial and in-kind support that year.

The form also lists the compensation for Phoebe's administrative staff within that timeframe. Phoebe Putney Health System CEO Joel Wernick reportedly received a base compensation of $553,358. When bonus and incentive compensation, other reportable compensation, retirement and other deferred compensation and nontaxable benefits are added, the total package for that fiscal year totalled $1.1 million.

Next in line after Wernick is Joe Austin, the system's chief operating officer. Austin received a base compensation of $384,085 with a total package of $613,774.

Officials said the form was expected to be on Phoebe's website in the next few days.

In addition to presenting the 990, Kerry Loudermilk, Phoebe's chief financial officer, gave a year-to-date financial report for the current fiscal year.

The report showed $589.6 million in revenues. The hospital had budgeted $582.9 million. At the same time, Phoebe has had $206.2 million in expenses after budgeted for $199.1 million.

This means the hospital is $7 million over budget in expenses.

"This is associated with costs we need to make sure we are taking care of patients," Loudermilk said. "We need to make sure we are not out of range of hospitals of (similar) size.

"If we can take care of patients in a less costly manner, we (will increase) the quality of care."

On that note, Loudermilk added that the average length of stay in the hospital is decreasing. Initially budgeted for 5.25 days, Phoebe has reportedly shown an average of 5.04 days for the year to date.

"Generally, when that number goes down, the quality (of care) goes up," he said. "(Those items) are inversely related."

Comments

dingleberry 2 years, 1 month ago

If there were $505 million in revenues and $206 million in expenses, what happened to the $299 million left over?

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Cartman 2 years, 1 month ago

Pretty good money for a "non-profit" outfit. Does this mean that we get part of our money back? Or does it go into one of the "for profit" corps, like Phoebe Putney Health Systems, Inc.? Follow the money. Others have tried.

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whattheheck 2 years, 1 month ago

Yeah, Cartman, the check is in the mail! Oh, I'm sorry, it's not a check, it's a bill. Hate to break this bad news to you but Health Systems is, drum roll pls, a "not for profit". You know, not for profits are more charitable and profitable than for profits and therefore are more desirable when profit is really the motive and there are big salaries and benefits to be paid. It would be a confusing situation if it were not so clear.

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Cartman 2 years, 1 month ago

You are correct, but they have at least one "for profit" corp sprinkled in there too. I'm pretty sure that Phoebe Putney Health Ventures, Inc. is that way.

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ObjectiveEyes 2 years, 1 month ago

Cartman: The answer is, yes, the profits will be transferred from the Hospital (which is subject to open record laws) to the Health System (which, of course, is not subject to open record laws). In the last 10 years, PPMH has transferred approximately $180 million to PPHS. Let's see, the Hospital has $637.8 million in assets, the System has about $290 million and the Foundation has another $12 million. That's dang near $1.0 BILLION in net assets. And, all of this scraped off the backs of citizens and businesses through the astronomical health insurance premiums we ALL pay. But, that's ok with most I guess. Wernick makes more in a year than most make in a lifetime; owns two homes in DOCO, a farm in Terrell Co. and a home in an exclusive enclave at Lake Sinclair. But, who cares, we got our "World Class Medicine, Hometown Commitment" so why should we fuss?

A woman just left my office. Her father died at Phoebe last April. A letter arrived today, stating something to the order, "Mr. ___ this is our FINAL attempt to collect on this bill. If payment is not received in 30 days, we will forward your account to a collection agency..." Mind you, this was the first and only communication or bill from Phoebe. What's all the fuss about, one year later? $29.16! "Hospital with a heart" my butt!

"Generally, when that number goes down, the quality goes up..." Loudermilk obviously has not read some of the articles I have. What he meant to say was, "...when that number goes down, our profits go up...way up!..."

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Trustbuster 2 years, 1 month ago

It seems that this non for profit hospital is doing great business with all the money in its checking account. The executives seem to be drawing top salaries but further drives home the economic disparities that exists in rural S. Georgia. I'm sure that a majority of the people in this area make nowhere near the amount the Phoebe boys earn. I don't believe in the redistribution of wealth but it is ironic that this hospital which claims to have a heart for the little people rakes in big cash yearly and has off shore bank accounts away from IRS jurisdiction.

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ObjectiveEyes 2 years, 1 month ago

Results from a national survey were published in a recent issue of Modern Healthcare. In 2010, the median CEO compensation package for a health system with revenues in excess of $1.0 billion was $1.2 million. Phoebe doesn't (yet) come any where near $1.0 billion in revenue, but yet, pay comparable salaries. Of course, they fall back on the old, "...have to pay market rates in order to attract talent..." line. But, then again, the "compensation committee" approves the packages, all be it, at the recommendation of the "consultant" (who the execs play golf or hunt quail with). A Boston-based consumer advocate said, "...high executive compensation should raise questions especially now with the economic downturn and people losing their jobs...at the community level there should be conversations on this issue..." Former Georgia Department of Community Health (in charge of the Medicaid program) Russ Toal added, "...the irony is many of these communities have a disproportionate share of low-income folks...these guys do a good job...they are competent people...but do you have to pay that much?"

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