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Medical Center Officials Report Massive Budget Gains

Posted on: Thursday, 12 January 2006, 15:01 CST

By Jennifer Edwards, Odessa American, Texas

Jan. 11--Medical Center Hospital officials announced a steep improvement in finances in the last two fiscal years and received a clean external audit during Tuesday's board meet.

The hospital reported profits of $12.7 million dollars in the 2004-2005 fiscal year -- nearly $30 million dollars more than its 2003-2004 deficit of $17.2 million.

The reason was a combination of new funds, scaled-back staffing and employee health benefit reductions, MCH Chief Financial Officer Robert Abernethy said.

"The biggest factor is that we got a bigger portion of funds from the state," he said.

He said the hospital had also adjusted staff and staff benefits to account for patient volume.

MCH's new physical therapy unit also reported 2004-2005 finances that surpassed expectations, with a reported surplus of $1,433,837.

Finances in October and November were also in good shape for MCH, with a reported $2.6 million surplus over budget, he said.

The biggest factor in that gain is a reduction in benefit costs for what he termed "a limited number" of employees hired before January 1993.

Abernathy said he was pleased with the improved financial state.

"It's a little more fun this year than last year," he said.

External auditors Deloitte & Touche approved MCH's internal audit and praised the hospital for its management cooperation during the auditing process.

"The opinion ... is a 'clean' opinion as in past years," Deloitte partner Vicky Keiser said.

Also during the meeting, MCH directors:

--Approved the purchase of two chemical analyzer machines at a cost of about $288,000.

--Honored employees of the year Romeo DeGuzman and Marlin Reaves and employees of the month Judy Sheppard and Christine Ray.

--Approved offering more money to emergency department doctors in order to better recruit and retain them.

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Copyright (c) 2006, Odessa American, Texas

Distributed by Knight Ridder/Tribune Business News.

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Source: Odessa American

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