Fiscal Year 2000 Ends on Encouraging Note
Net income shows improvement of $150 million
Catholic Health Initiatives’ financial results for the 2000 fiscal year, which ended June 30, showed significant improvement from the prior year. "Operating controls, prudent fiscal policies and liquidity management helped provide strength to the balance sheet," said Geraldine Hoyler, CSC, senior vice president, finance and treasury. "The statement of operations reflected stronger financial results, in large part due to successful efforts related to performance improvement through improved operations, additional revenue generation, cost management and strategic focus."
Net income for the year was $96.5 million compared to a net loss of $53.8 million in fiscal year 1999. "This resulted in a positive financial turn of more than $150 million between fiscal years," said Sister Geraldine.
Kevin Lofton, executive vice president and chief operating officer, said that many market-based organizations contributed to the positive financial results by improving their individual balance sheets. "We saw great progress at Centura Health in Colorado," he said. "Other market-based organizations, such as St. John’s Regional Medical Center in Joplin, Mo., achieved excellent results with the help of Catholic Health Initiatives’ performance management initiative. Both of these organizations took many steps toward improvement during fiscal year 2000, but the efforts that brought the most outstanding results were Centura’s renegotiation of managed care contracts and St. John’s improved bookkeeping and accounting." Lofton noted that Central Kansas Medical Center in Great Bend, Kan., St. Elizabeth Health Systems in Lincoln, Neb., and Franciscan Health System of Tacoma, Wash., achieved significant financial turnarounds during the fiscal year.
Catholic Health Initiatives improved its financial status without compromising care for the poor and underserved or its healthy community initiatives. Benefits delivered to the poor and to the communities Catholic Health Initiatives serves held steady at 10 percent of revenue in fiscal year 2000. In terms of dollars, benefits to the poor increased from $169 million in fiscal year 1999 to $186 million in fiscal year 2000, and benefits to communities increased from $301 million to $363 million.
Both Lofton and Sister Geraldine agree that the operating turnaround experienced during fiscal year 2000 bodes well for the future of Catholic Health Initiatives. "While additional improvement remains to be achieved, the gathering of resources dedicated to performance improvement direction and support should enable additional recovery in fiscal year 2001," said Lofton.