Nevada hospital profits drop 26 percent

Monday, Aug. 25, 2003 | 11:46 a.m.

CARSON CITY -- The profits of Nevada hospitals dropped by 26 percent in 2002 and Sunrise Hospital Medical Center in Las Vegas was dethroned as the top money maker in the state.

A newly published report by the State Division of Health Care Financing and Policy says the 24 hospitals reported net operating revenue of $48.5 million last year, down from $65.8 million in 2001. University Medical Center, the hospital run by Clark County, posted a $38.3 million loss versus the $1.6 million loss reported in 2001.

Mike Alastuey, lobbyist for UMC, said it has not received the report. But he said a good part of the higher loss was due to a write-off of uncollectable debts. Halfway through the year, the hospital had written $13 million off in bad debts. University Medical Center reported it billed $4,586 per patient per day but collected an average of $1,637 and had expenses of $1,811 for a $174 a day loss on an average patient.

He said in the second part of the year, it was "very difficult" because patient numbers were lower than anticipated.

Sunrise Hospital Medical Center in Las Vegas lost its position as the top profit making hospital in Nevada, reporting net operating revenue of $13.2 million, down from the $31.7 million profit of the previous year.

Mountain View Hospital, like Sunrise owned by HCA, posted profits of $7.1 million, up from $1.1 million in 2001.

Cheryl Smith, a spokeswoman for Sunrise, said the reason for the big difference of about $18 million is the hospital made a one-time adjustment. It increased reserves to offset lower payments being made in behalf of patients.

The division said the Siena Campus of St. Rose Dominican Hospital in Clark County became the top moneymaker, registering $13.8 million, up from $5.5 million in 2002. The hospital's Rose de Lima campus posted a $2.9 million loss, a far better performance than in 2001 when it lost $13.8 million. Washoe Medical Center in Reno was second with net revenue at $13.7 million, up from $8.5 million. In fourth place behind Sunrise was Carson Tahoe Hospital, classified as a small urban hospital as is St. Rose Dominican Hospital, with $11.1 million net operating revenue in 2002, up from $3.1 million in the prior year.

Five of the ten hospitals in rural Nevada reported losses, topped by Humboldt General Hospital in Winnemucca, which was in the red $2.4 million and Battle Mountain General Hospital that lost $1.8 million.

The top earner in rural Nevada was Northeastern Nevada Regional Hospital in Elko. It reported $5.4 million in net operating revenue.

Two of the three hospitals operated by Universal Health Services in Clark County reported profits. Valley Hospital Medical center registered $7 million in net operating revenue, up from $5.1 million in 2001; Summerlin Hospital Medical Center reported $6.7 million in profit, compared with a $10.5 million loss in 2001 and Desert Springs Hospital had a $971,464 loss, down from a $1 million loss of 2001.

Universal Health Services also operates Northern Nevada Medical Center in Washoe County. It reported $7.4 million in net operating revenue.

St. Mary's Regional Medical Center in Reno posted $9.8 million in net operating revenue, up 46 percent from 2001.

The state division said other hospitals in Clark County were Boulder City Hospital and Lake Mead Hospital Medical Center.

Boulder City had a $335,425 loss but it was less than the $679,092 lost in 2002. Lake Mead had $187,718 in net operating revenue, down from $1.3 million in 1002.