Thanks to Phelps Health’s investments, July’s net income was $5.7 million, which was over budget by $4.7 million.
Jana Cook, the health system’s chief financial officer, reported to the Phelps Health Finance Committee at its noon meeting Monday that non-operating revenue was $5,547,000 in July, which was over budget by $4,853,000.
“This gain was due to favorable market conditions impacting the investment portfolio during the month of July,” Cook said.
The unrealized gain from investments amounted to $5,405,000. Other non-operating revenue came from interest, $57,000; the hospital’s foundation, $13,000, and unspecified other revenue, $71,000.
Despite that July gain, non-operating revenue for the year is still a $15,311,000 loss, for the portfolio remains $17,361,000 in the red. Interest income for the year is $1,698,000 and foundation revenue is $281,000. The unspecified other revenue is $71,000 for the year.
July net operating revenue of $25,508,000 was under budget by $1,281,000 (4.8%).
Operating expenses for July were $25,334,000, under budget by $1,121,000.
Operating income for July was $174,000, under budget by $160,000, Cook said.
Cook also reported in her summary that:
• So far this year, loss from operations of $5,497,000 was under budget by $7,356,000.
• Through the end of July, income from operations as a percentage of net operating revenues was -3.1%, compared to a budget of 1.0%.
• Year-to-date, net loss of $20,808,000 was under budget by $27,411,000.
• Through July, net income as a percentage of total revenues was -12.7%, compared to a budget of 3.5%.
• Purchase services expense was over budget by $124,000.
• Salaries and benefits expense and supplies expense was under budget by $1,082,000 and $195,000, respectively.
• Total cash and investments were $163,037,000 at July 31, 2022, which was a decrease of $36,595,000 from December 31, 2021.
• Total debt was $59,303,000 at July 31, which is a decrease of $4,533,000 from Dec. 31, 2021.
The committee approved the report and recommended it to the full Phelps Health Board of Trustees, which is scheduled to meet Aug. 31.
