VIDEO: GMH Suffers $21 Million Operating Loss in FY 2010

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Guam – Guam Memorial Hospital Authority [GMHA] suffered an operating loss of $21-million dollars in FY 2010.

That is one of the highlights from the Financial Audit of GMHA released today [Wednesday] by the Office of Public Accountability.

Among the other highlights:

* GMHA is only collecting only 24-cents for every dollar owed by its patients.

* Operating expenses grew 33% from $79.3 million to $105.8 million.

* Nursing costs increased from $34.5 million to $50.6 million.

* The increases in expenses for the hospital can be directly attributed to the recruitment of nurses as part of GMHA’s pursuit of accreditation.

* GMHA ended the fiscal year with a $12.4M dollar decrease in net assets, a 215% decline from the $10.9M increase in net assets in FY 2009.

The audit found that even though “gross patient revenues increased, the collection of revenues declined from 65% to 57%.”

The OPA concludes that operations at GMH “continue to be challenged due to the high dependency” on GovGaum appropriations.

Read the OPA’s GMH Audit Highlights                

GMHA is the first entity to release its FY 2010 audit and the OPA “applauded” GMHA “for issuing its audited financial statements early for the second year in a row and for attaining accreditation from the Joint Commission after 26 years.”  Deloitte & Touche conducted the audit and rendered an unqualified or clean opinion on GMHA’s financial statements.

However, the OPA notes that in order to get that “clean” opinion, 6 audit adjustments had to be made which had a cumulative effect of reducing net assets by $3.2 million.

Also, GMHA received a qualified opinion on the independent auditors’ report.

The Hospital was cited for 3 material weaknesses involving patient receivables, lack of a “perpetual” pharmaceutical inventory and $729-thousand dollars in questioned procurement costs which resulted in 1 significant deficiency.