Hospitals enjoy higher profits

Thursday, Sept. 28, 2000 | 10:58 a.m.

CARSON CITY -- Profits earned by Nevada hospitals rose to $60.5 million last year, an increase of 10 percent, a state report says.

The state Division of Health Care Financing and Policy said today the six major hospitals in Nevada all produced profits, led by the $29.8 million in net operating revenue registered by Sunrise Hospital and Medical Center in Las Vegas.

But eight of the medium and smaller hospitals posted losses for the year. The biggest was $10.1 million by St. Rose Dominican Hospital in Henderson.

The figures are compiled from reports by the hospitals to the state division.

Statewide, the study said, patients were billed an average of $4,086 per day, but hospitals collected only $1,497. One of the main reasons is Medicare and Medicaid pay only a portion of the bill charges. In addition, hospitals have contracts with companies or employee groups that also get rates lower than the billed charges.

In 1998 the hospitals billed patients an average $3,876 per day and collected $1,477.

Profits at the state's Big Six hospitals -- Desert Springs, Sunrise, University Medical Center and Valley Hospital in Las Vegas and two Reno hospitals -- rose 12.2 percent to $56.9 million.

The division said Sunrise earned $7.1 million in profits in 1998, which jumped to $29.8 million last year. Valley earned $8.4 million, down from $23.3 million in 1998.

Desert Springs reported $542,416 in profits, down from $3.7 million of 1998. Profits at University Medical Center dropped from $9 million to $6.3 million in 1993.

The other two major hospitals -- St. Mary's Regional Medical Center and Washoe Medical Center, both in Reno -- increases in profits. St. Mary's rose from $3.2 million to $7.1 million, and Washoe inched up from $4.1 million to $4.5 million.

The report said the $10.1 million loss at St. Rose Dominican comes after a profit of $2.3 million in 1998. Summerlin Hospital Medical Center registered $718,989 in profits for 1999, after a loss of $4.2 million in 1998.

MountainView Hospital posted a $1.9 million loss last year after reporting a $3.1 million profit in 1998. Profits at Lake Mead Hospital Medical Center in North Las Vegas rose from $2.7 million to $6.7 million in 1999. Boulder City Hospital registered a $617,148 profit after a $45,758 loss in 1998.

The Nye Regional Medical Center in Tonopah, which has been struggling to keep its doors open, posted a $1.5 million loss for 1999. And Battle Mountain General Hospital in Lander County recorded a $1.4 million loss.