At the WinnMed Board of Trustees meeting held Oct. 4, members touched on the progress of the “Transforming Tomorrow” project. At next month’s meeting Nov. 15, a feasibility study discussion will be held followed by a special meeting where the board will take final action on the “Transforming Tomorrow” project.
“We’re closing in on some big decisions,” stated Josh Ripplinger, partner and healthcare planner at Wold Architects and Engineers hired as the architect for the “Transforming Tomorrow” expansion and additions.
“Transforming Tomorrow” developed from a discussion on the facility’s master site plan in 2017. The project includes renovations of existing spaces, expanded space for Primary Care and Specialty Care outpatient clinics, expanded operating and surgery suites, redesigned and expanded mother and baby suites to allow delivery and recovery in the same suite, each with its own tub, and a more modernized obstetrics area.
Audit review
The WinnMed 2023 audit was reviewed for the fiscal year ending June 30, 2023. There was a 6.7 percent increase in total operating revenues from fiscal year 2022-23, while their net position increased by $8,226,600 from June 2022 to June 2023. Total operating revenues of $81.8 million for fiscal year 2023 increased by $5.1 million from fiscal year 2022 – over six percent growth. Significant growth was experienced in outpatient revenues in fiscal year 2023 with 89 percent of total patient revenues ($165,742,994) generated in an outpatient setting ($148,034,166). The Medical Center reported $484,663 in charitable care provided to patients and offset $85,608,011 in contractual adjustments for payments by insurance companies and third-party payors, such as Medicare, to tally the total operating revenues.
Outside of patient service revenues, WinnMed received $3,116,318 for the 340 B Drug program, which offers reimbursements to equal low-cost medications to Critical Access Hospitals (like WinnMed) that provide care to those uninsured, or underinsured, and are unable to pay privately.
Total Operating Revenues for the year, after expenses, totaled a $4,129,857 increase in income, along with a $3,638,711 increase from non-operating revenues. Non-operating revenues includes $1,071,042 in property tax revenue from the county, $1,592,501 in Provider Relief funds, Interest expense or $37,281 Investment income, grants and contributions not restricted for capital expenses. The change in net position for WinnMed and the WinnMed Foundation increased from $40,133,877 at the beginning of the year to $48,360,477 as of June 30, 2023.
The health center reduced its long-term debt to $276,557 as $1,077, 888 was paid down on three existing notes, not including $482,513 due for the Paycheck Protection Program, with payments due through April 2025.
WinnMed showed related party transactions to the Mayo Clinic Health System (MCHS) Decorah totaling $11,615,419 for FY2023 for the clinic to provide medical services to patients of the Medical Center, as physicians providing medical service are all employees of MCHS. The professional agreement has WinnMed repaying Mayo for all the labor expenses along with a two-percent administrative fee to MCHS. For the management contract with Mayo Foundation for Medical Education and Research (MFMER), WinnMed saw an expenditure of $1,476,545 for FY2023, up 2.8 percent or $40,333, from 2022 fees paid.
Expenses rose 8.4 percent over 2022, with labor being the second highest expense at $36,896,877, following supplies at $40,753,517. Top three most expensive departments to run per the audited report were the clinic, totaling $14,690,584 in “labor and supplies” expenses, administrative, financial and general services at $9,010,796, and the emergency room, totaling $5,978,610 in labor and supplies.
In their 2023 fiscal year, WinnMed served an average of 3.1 inpatient admissions per day, for a total of 3,521 patient hospital days – 260 days less than 2022. There were 1,142 patients admitted to the hospital over the year, meaning an average of 3.08 patient days per admission. There were over 58,970 visits to the outpatient clinic during the same time.
With the expansion of the Medical Center, the volume of patients and services will continue to grow, as will the footprint and layout of the facility.
(Originally published in the November 9 Public Opinion, available in print and online. Certain content is presented first to subscribers (print and digital), then released for consumption later)
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