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Town's loan provides boost, official says

By Kayla Carter
Staff Writer
[email protected]
After much uncertainty surrounding Unicoi County Memorial Hospital’s finances, Chief Financial Officer Toni Buchanan said after Monday’s Board of Control meeting that last month’s approval of an $800,000 loan from the town of Erwin has offered some relief.
“It helped pay down a lot of the accounts payable,” she said. “We’ve also set some back for payroll.”
Stipulations surrounding the loan, which was approved by the town of Erwin on May 14, included meetings with CEO Jim Pate and a financial officer to oversee that the hospital is making financial improvements; a deed of trust given to the town for the hospital’s property; and a medical care consultant to be hired at the hospital’s expense in order to improve financial stability through audits and suggestions.
During the meeting, Buchanan said that May’s financial review had not been compiled for the meeting but will be sent out by the end of the week. She was able to give a few estimates, but wanted extra time to look over the numbers.
She estimated that $2,990,712 was the amount billed and $1,082,547 was the amount of cash collected in May. The estimated cash activity showed that $1,882,547, which included the city’s loan, was deposited into the hospital’s bank account and a cash total of $793,673 was paid out to accounts payable.
Buchanan also went over a financial report for the month of April. “The hospital had a positive variance to budget for the month of April,” she said. “The net income was $57,096 as compared to the budgeted loss of $18,639. This created a positive variance to budget of $75,735.” Factors involved were higher revenue, higher discounts and higher expenses.
She reported that the hospital awaits an estimated $833,117 from Medicare as of Friday, June 15. The total amount of cash collected in April, she said, was $1,224,939.

For the remainder of this article please pick up the June 19, 2012 edition of The Erwin Record.