Bradford Regional Medical Center officials on Friday noted that
the center ended its 2004-2005 fiscal year on a high note,
reporting the first positive bottom line in several years.

“It’s pretty significant that we’re showing gains,” said BRMC
President and chief executive officer George E. Leonhardt. “It’s
proof that the initiatives we’ve instituted are moving us in the
right direction.”

While in 2003-2004 the Medical Center’s final audited figures
showed nearly a $1.2 million deficit, the 2004-2005 fiscal year
reports a $500,000 profit.

“That’s a dramatic turnaround,” Leonhardt said, noting that
several factors account for the shift, beginning with the
development of a five-year comprehensive strategic plan designed by
the hospital’s board of directors and senior administration.

“2005 was the first year that we began to carry out that plan,
and we’re pleased with the outcome,” he noted. “While we still have
a lot of challenges ahead of us, we have every reason to be
optimistic.”

As part of that plan, BRMC hosted groundbreaking ceremonies
Sept. 30 on a $14.5 million expansion and renovation project, with
construction already under way.

“We have a bright future in store for us,” Leonhardt added.
BRMC’s audited 2004-2005 financial statement shows revenue from
operations totaling $60,182,947 and total operating expenses at
$59,643,123.

Additional income received from sources such as investment
returns and contributions totaled about $1 million. Hospital
officials will give their “Annual Report to the Community” during
the Bradford Area Chamber of Commerce breakfast meeting at 7:15
a.m. Tuesday in the Commons building at the University of
Pittsburgh at Bradford.

For the hospital’s financial executives, the report on the
positive fiscal turnaround was welcome news. When last year’s
budget figures were released, BRMC’s Senior Vice President and
Chief Financial Officer James Tarasovitch was just one month at his
new post in Bradford, but already expressed optimism in its ability
to turn around financially.

“I said then that I was very encouraged by the direction this
hospital was going in, and I think these figures bear that out,” he
said this week. “The upward trend shows a $1.7 million swing in
operations – that’s a huge accomplishment.”

Officials said a number of factors contribute to the positive
news, among them staff costs, rising revenues, changes in insurance
rates and debt reconstruction.

“Part of our success was in being able to eliminate agency
staffing over the previous year,” Tarasovitch said, noting that
shortages in some medical fields such as nursing meant higher labor
costs in previous years.

“We had success last year with our recruitment efforts and
that’s had an impact on the bottom line,” he explained.

Another factor in the positive turnaround was due to some
increases in Medicare and Medicaid reimbursement rates, a staple in
a hospital’s total budget package.

In addition, over the past few years, efforts toward controlling
costs in the day-to-day operations have continued to have a
positive effect on the bottom line, officials said.

“As an organization, we continue to watch our expenses and to
find more efficient ways to deliver services to our community,”
said Tarasovitch.

Perhaps one of the most crucial elements in BRMC’s budget
turnaround is in the positive performance of some key centers of
operations, like Surgical Services, Oncology/Hematology, Cardiology
and Neurology.

When completed, BRMC’s new construction project will provide
expanded areas for these and several other core services, and
target behavioral health as a comprehensive regional service.

The continuing shift from inpatient stays to outpatient services
and the revenue generated through a stellar Imaging Services center
also impact positively on the bottom line, officials said. Among
the budget challenges faced in this new year, Tarasovitch said, are
some issues that all consumers will face.

“Utility costs will be a big concern – we’re no different from
homeowners in that respect,” he said, noting that increases could
be as high as 60 percent.

Rising pharmaceutical costs are also a key challenge for health
care organizations.

As to the future, “We’re encouraged that our long-term prospects
will continue moving in the right direction. We have tremendous
opportunities and we’re well on our way to meeting our
expectations,” said Tarasovitch.

-Provided by BRMC